QuadrigaCX Creditors to Receive 13% Interim Dividend Amid Ongoing Bankruptcy Proceedings

QuadrigaCX Bankruptcy Unfolds

The saga of Bankruptcy and crypto has reached an intriguing chapter as creditors of the infamous QuadrigaCX are set to receive an interim dividend of 13% of their total claims. If you’re thinking this is good news, well, let’s just say it’s better than finding a pair of socks in the dryer—at least it’s something!

Details from the Trustee

On May 12, the bankruptcy trustee Ernst & Young (EY) announced that each creditor with a legitimate claim would receive 13.094156% of their proven claim, minus a levy payable to the Office of the Superintendent of Bankruptcy (OSB). Sounds like a series of financial gymnastics just to get a little taste of what’s left!

Where the Money Stands

Approximately 87% of the funds currently held by the trustee will be distributed. So, what’s left after all those financial acrobatics?

• Total Claims: 305.6 million Canadian dollars (~$223 million)
• Creditors Involved: 17,648
• Claims Distribution: 15,356 creditors owe between $0 and $10,000
• Big Spenders: Just 15 creditors are owed over $1 million, including a hefty $11.7 million owed to the Canada Revenue Agency.

The Crypto Fallout

When QuadrigaCX collapsed in early 2019 following the untimely death of co-founder Gerald Cotten, many former users were left in a lurch holding onto crypto assets. Their holdings were converted into cash value as of April 15, 2019, which means out of the 1 Bitcoin you once hoped was your ticket to financial freedom, you might only see $4,933 back soon—but hey, that’s better than nothing!

What’s Next for Creditors?

As for when these interim dividends will actually land in the creditors’ bank accounts, that’s still a mystery. The law firm Miller Thomson, representing these weary creditors, hinted that the distribution could happen soon. In the meantime, it’s a waiting game until those funds unfurl like a late spring bloom.

Conclusion: A Lesson in Caution

The QuadrigaCX debacle serves as a cautionary tale for crypto enthusiasts. While the interim dividend is a small victory in a tangled web of bankruptcy, it highlights the risks involved in the crypto space—especially the dangers of enabling a single point of failure like a mysterious CEO with the keys to the kingdom.