QuadrigaCX creditors set to receive 13% of their claims as an ‘interim dividend’

Blockchain

Creditors of the bankrupt Canadian crypto exchange QuadrigaCX are set to receive 13% of their total claims as part of an “interim dividend.”

According to a May 12 notice to creditors from QuadrigaCX’s bankruptcy trustee Ernst & Young (EY), each “creditor with a proven claim will receive 13.094156% of their proven claim less the levy amount payable to the Office of the Superintendent of Bankruptcy pursuant to the BIA.”

The interim dividend provides for a distribution of approximately 87.0% of the funds the Trustee is currently holding. The remaining funds will be held as a reserve for future disbursements related to the administration of the bankruptcy. A final distribution will be made at a later date,” EY added.

The notice indicates that there has been 305.6 million CDN ($223 million) worth of claims made by 17,648 creditors.

According to EY, 15,356 creditors are owed between $0 to $10,000, while 1,784 are owed between $10,000 and $49,999.

Breakdown of value owed to creditors. Source: Ernst & Young

Just 15 creditors are owed more than $1 million, with the Canada Revenue Agency owed 11.7 million CDN worth of back taxes from 2016 to 2018.

While former users of the exchange mostly held crypto assets at the time of the firm’s collapse in 2019, their claimed holdings were converted into the monetary value of the asset as of April 15 that year.

As such, if someone held 1 Bitcoin (BTC) at the time, they will eventually get back 6,739 CDN ($4,933), with 13% of that soon coming as an interim dividend.

Crypto value as April 15 2019. Source: Ernst & Young

Related: Binance calls it quits in Canada, blames new rules

It has not been specified when the interim dividends will be distributed, however Miller Thomson, the law firm representing the creditors, suggested on May 8 that it will happen over the next few weeks.

QuadrigaCX was one the largest crypto exchanges in Canada before it became insolvent in early 2019. Shortly after its co-founder and CEO, Gerald Cotten, died in India, taking the private keys to QuadrigaCX’s offline storage systems to his grave.

Magazine: Magazine: $3.4B of Bitcoin in a popcorn tin — The Silk Road hacker’s story

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