QuadrigaCX Creditors Set for 13% Interim Dividend

The Latest Update on QuadrigaCX Creditors

In an unexpected twist that feels like a Netflix drama gone wrong, creditors of the infamous Canadian crypto exchange QuadrigaCX are poised to finally see some return on their long-lost investments. Thanks to a notice from their bankruptcy trustee, Ernst & Young (EY), it’s been revealed that creditors with proven claims will receive an interim dividend of 13.094156% of their claims. Talk about a modest victory for those who thought they might never see a dime again!

How Much Are We Talking?

The amount at stake is no small potatoes—approximately 305.6 million Canadian dollars ($223 million) in total claims made by 17,648 creditors. Let’s break it down a bit:

15,356 creditors are clinging onto hopes of recovering amounts from $0 to $10,000.
1,784 creditors might get back between $10,000 and $49,999.
Only a dazzling 15 creditors are waiting for paychecks exceeding $1 million. One of them, the Canada Revenue Agency, is owed a whopping 11.7 million Canadian dollars. Ouch!

What Does the Future Hold?

Now before you pop open the champagne, it’s essential to note that this interim dividend represents approximately 87% of the funds the trustee currently holds. However, EY has made it clear that the remaining funds will be kept in reserve for administrative costs moving forward. So, the wait isn’t over just yet; a final distribution will be decided later on.

How the Play-by-Play Goes Down

So, how does one receive this generous chunk of change? Well, former users, who mostly lost crypto assets back in 2019, will find their claimed assets converted into monetary value based on the rates as of April 15, 2019. For example, if you held 1 Bitcoin (BTC) at that dreadful moment in time, you would receive a cool 6,739 Canadian dollars ($4,933). And yes, 13% of that will be coming your way soon as part of the interim dividend. Get ready for that feeling of ‘partially’ winning the lottery!

When Can We Expect Our Cash?

As of now, the date for the distribution of interim dividends is still shrouded in mystery. However, the legal eagles over at Miller Thomson, representing the creditors, hinted that funds should start flowing within the next few weeks. Among all this dial-up speed of legal proceedings, could this be the light at the end of the tunnel for QuadrigaCX’s long-suffering creditors? Only time and the legal system will tell.

A Reminder of QuadrigaCX’s Turbulent Past

For those who might need a refresher, QuadrigaCX was once basking in the glory as one of Canada’s largest crypto exchanges until it spiraled into insolvency in early 2019. To add insult to injury, the co-founder and CEO, Gerald Cotten, unexpectedly passed away in India, taking the private keys to the company’s crypto assets with him. Now that’s a plot twist straight out of a thriller novel!