The crypto world recently experienced a sigh of relief as former users of the bankrupt Canadian crypto exchange Quadriga CX have been informed that they will soon receive a check for 13% of their claim. According to a notice to creditors published by accounting giant EY, Quadriga’s estate owes CAD $303.1 million ($222.3 million) across 17,648 claims from creditors, including Canada Post and the Canada Revenue Agency (CRA).
The claims range vastly in value, with 15 claims exceeding CAD $1 million, 28 claims between CAD $500,000 and $999,999, and a more modest 15,236 claims under CAD $10,000. Amidst this backdrop, the CRA determined that Quadriga had not reported income during the fiscal periods of 2016-2018, leaving the exchange owing $11.7 million in back taxes.
The payout for the claimants will be based on the value of the cryptocurrency according to market prices on April 15, 2019. To break it down, users with Bitcoin claims will receive CAD $6,739.08 ($7,122.9) per BTC, and those with Ethereum claims can expect a payout of CAD $223.45 ($299.45) per Ether.
While this news is undoubtedly a positive development for the claimants, it simultaneously raises questions about the sustainability and security of crypto exchanges in the long run. On the one hand, this payout assuredly restores some level of faith in the crypto community by providing lost funds to affected users. On the other hand, it also highlights the potential risks and uncertainties associated with trading and storing crypto assets.
Moving forward, the case of Quadriga CX raises the question of whether tighter regulations should be implemented to prevent future cases of bankruptcy and mismanagement. Such measures could provide better protection for crypto traders and investors alike, minimizing the chances of similar incidents occurring in the future.
Ultimately, while the Quadriga CX saga appears to be reaching a resolution, it serves as a reminder that the world of cryptocurrency, as exciting and potentially profitable as it may seem, also comes with its fair share of challenges and risks. As investors and traders continue to explore this relatively new domain, maintaining a balance between excitement and caution to ensure that lessons learned from past events are not forgotten is crucial.
Source: Coindesk
