Ernst & Young has disclosed information about the compensation of funds to QuadrigaCX customers

Ernst & Young has disclosed information about the compensation of funds to QuadrigaCX customers

Ernst&Young (EY), the trustee of the closed cryptocurrency exchange QuadrigaCX, said it can satisfy user claims for only $29.8 million out of $171 million.

According to information filed in the Ontario Supreme Court on November 6, EY received 17,053 claims from customers of the closed Canadian exchange QuadrigaCX. Former clients of the platform filed claims for the return of almost 90.2 million Canadian dollars, $6 million, as well as 24,427 BTC, 65,457 ETH, 87,031 LTC, 7,723 BCH, 17,934 BTG and 7,098 BSV. The total amount of claims at current rates is about $171 million.

Recall that QuadrigaCX ceased operations under mysterious circumstances. According to official information, the founder of the exchange Gerald Cotten (Gerald Cotten) died suddenly in December 2018, and on January 28, 2019, the exchange went offline. In April, QuadrigaCX was declared bankrupt, and a month later, the court temporarily released the exchange from prosecution of creditors.

Last summer, it became known that Cotten used clients ‘ money to trade personally on other exchanges, and earlier this year, lawyers for QuadrigaCX clients demanded the exhumation of the exchange’s founder’s body.

EY notes that Cotten, after whose death access to the private keys of the exchange’s wallets was lost, traded using the funds of 76,000 customers of the platform, which led to a discrepancy between the assets and liabilities of the exchange. At the moment, EY has at its disposal $29.8 million received from the sale of Cotten’s assets, as well as transfers from his widow and a third-party payment firm, the services of which were used by the exchange.

The trustee plans to convert all available assets into Canadian dollars and distribute the money to users at cryptocurrency exchange rates either on April 15, 2019, when QuadrigaCX declared bankruptcy, or on February 5, 2019, when users were blocked from accessing the exchange. EY asked the court to determine the date of the exchange rate.