In a recent announcement on May 8, users of the failed cryptocurrency exchange QuadrigaCX received some much-needed news from the law firm Miller Thomson. They informed users that there will be an interim distribution of funds related to the ongoing bankruptcy proceedings, eagerly anticipated by many. Set your calendars because these distributions are scheduled to be rolled out in the coming weeks!
The Role of the Bankruptcy Trustee
Bankruptcy trustee Ernst & Young has taken the reins on this complex case along with estate inspectors to ensure a fair process for all affected users. According to the firm, a Notice to Affected Users will soon be released, detailing how the distribution will happen. So, stay vigilant—your inbox might just receive some crypto-goodness soon!
What is a Notice of Disallowance?
However, not all news may be sparkling. Some users may receive a Notice of Disallowance of Claim, which means their claim has hit a bump in the road during the bankruptcy process. In simpler words, your request for reimbursement got the thumbs down. Miller Thomson reassured that if you find yourself in this predicament, you have the right to appeal.
Steps to Appeal Your Claim
This is where things can start to feel a bit more bureaucratic than you’d like. Miller Thomson suggests that if you receive a Notice of Disallowance, your first step should be to:
- Review the reasons for the decision carefully.
- Gather any evidence that might support your claim.
- Understand that discrepancies in your proof of claim might have led to this situation.
So, check your paperwork and don’t hesitate to bring out the magnifying glass!
A Quick History Recap
For those who might need their memories jogged, QuadrigaCX was once the heavyweight champion of Canadian cryptocurrency exchanges. However, it went belly-up in February 2019, leaving a trail of broken dreams and financial woes in its wake, especially after co-founder Gerald Cotten passed away unexpectedly in India. To make matters worse, he took the private keys to QuadrigaCX’s digital fortunes with him, leaving users in the lurch.
The Financial Fallout
According to estimates from the Ontario Securities Commission (OSC), QuadrigaCX owes its users around a whopping $160 million. Adding insult to injury, it was reported that Cotten had racked up a staggering $86 million in crypto trading losses, which he apparently covered up using customer funds. Did someone say ‘double whammy’?
Current Progress on Fund Recovery
In light of these grim statistics, it’s nice to know that Ernst & Young has miraculously recovered $34.3 million worth of assets thus far. Although the OSC noted, “We did not identify any other assets beyond those identified by Ernst & Young,” leaving many wondering if more treasures remain buried.
Looking Ahead
As users eagerly await their potential payouts, it’s a reminder of the volatility and risk associated with cryptocurrency—even in the realm of exchanges that once seemed like solid ground. For all affected individuals, be sure to stay tuned for the official notices and updates on the distribution process. After all, every little bit counts, right?
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