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On Friday, a company called EY shared news about Quadriga CX, a Canadian crypto exchange. The crypto exchange had been hoping to get bankruptcy protection in 2019 with money owed adding up to C$215.7 million and total assets of C$28 million. This caused confusion among its creditors. EY said that the creditors will receive 13.094156% of their claims back as part of the payout.
“Getting 13% of Money Lost
After going through a long and difficult bankruptcy process that started in 2019, Quadriga CX’s customers and creditors can finally be grateful because they will receive money from the company soon. Before this, Quadriga CX was the most important cryptocurrency trading platform in Canada but it faced lots of problems with their finances in 2018.
Gerald Cotten, the CEO of Quadriga CX, sadly died while travelling in India on December 9th, 2018. His wife shared the news with Quadriga customers almost a month later on January 14th, 2019. By the end of that same month, the company had to seek protection from its creditors.
An accounting firm called EY was chosen to take care of the bankruptcy process. As time passed, some surprising things were found out, which showed how Cotten and his friends were trying to cheat people.
Last year, the Ontario Securities Commission stated that Quadriga is a dishonest company and it’s doing bad things. Recently, EY shared news about refunds for those who were affected by this fraud. Unfortunately, though, people won’t be getting back all their money – instead, they’ll get 13.094156% of what they lost.
EY (a firm that handles finances) said that each creditor will get 13% of the money held by the Trustee. That’s about 87%, with the rest being kept for future payments related to managing the bankruptcy.
The document reveals an amazing fact: Quadriga got around 17,648 requests for help. One big request came from the Canada Revenue Agency (CRA).
Quadriga had to pay lots of taxes for two years in a row and now owe the Canadian government $11.7 million. Also, people who were owed cryptocurrencies will only get some of their digital money back converted into Canadian dollars.
If you owed money to a creditor in the form of one bitcoin (BTC), on April 15th, 2019 that would be worth around C$6,739.08 while if you had one ethereum (ETH) it would have been worth near C$223.45. What do you think about how Quadriga CX’s bankruptcy is being paid out and managed? Share your thoughts with us in the comments section below!