The long-awaited moment has arrived for the creditors of the bankrupt Canadian crypto exchange QuadrigaCX, as an “interim distribution” of funds is set to commence. The law firm Miller Thomson released a status update on Monday stating that, in the coming weeks, a Notice to Affected Users will be posted providing details about the manner and procedure for the Interim Distribution, as well as other related information. However, it is important to note that only a fraction of the missing funds has been recovered.
The unfortunate saga of QuadrigaCX began in 2018 when its CEO, Gerald Cotten, passed away under mysterious circumstances in India. His death led to the loss of the only known private keys to the exchange’s wallets, which has left creditors in the lurch. The intriguing story has captured the public’s attention, even inspiring a popular 2022 Netflix documentary.
While this interim distribution may bring some relief to the affected users, it’s necessary to approach the matter with a light twist of skepticism. According to the bankruptcy trustee Ernst & Young, only $34.3 million worth of crypto has been recovered from the estate so far. Comparatively, the Ontario Securities Commission estimated that QuadrigaCX owes its customers a staggering $160 million.
Additionally, a small number of QuadrigaCX users will receive a “Notice of Disallowance” from the bankruptcy trustee. This notice informs them that their claims have been revised (reduced) or disallowed (rejected). Those receiving this notice should consult the update for further details on how to proceed.
In conclusion, the interim distribution of funds for QuadrigaCX creditors is finally on the horizon, offering some hope that they might eventually recover a portion of their lost funds. However, it is essential to keep in mind that a significant amount is yet to be found, and many users may still face the grim reality of not fully recuperating their assets. This event is a stark reminder of the importance of exercising caution when dealing with cryptocurrency exchanges and of understanding the potential risks associated with such platforms.
Source: Cryptonews
