Nearly 17,000 Creditors Claim Refunds from QuadrigaCX

Wednesday, 13/05/2020 | 07:12 GMT by Arnab Shome
  • EY has not set any deadline for distributing the amount to the affected users.
Nearly 17,000 Creditors Claim Refunds from QuadrigaCX
QuadrigaCX

As many as 16,959 people have claimed assets from the now-defunct cryptocurrency exchange QuadrigaCX, according to a document published on Tuesday by Ernst & Young (EY), the court-appointment bankruptcy monitor.

The former users of the exchange are filing claims for digital assets including Bitcoin , Bitcoin Cash, Bitcoin Gold, Bitcoin SV, Ethereum , and Litecoin, along with Canadian dollars and US dollars.

The audit firm detailed that it will convert all assets into Canadian dollars before distributing any amount to the creditors. However, it is not yet clear how the firm will value the digital currencies.

Based on the fiat valuation of the recovered crypto, the amount in claims filed by the former users can vary between $167 million to over $300 million.

Initially, EY asked the affected users to file for the claims by August 31 last year, but now it clarified that there is no hard deadline for that and will continue to receive requests.

The firm also revealed that it is still reviewing the filled claims and notified about the technical deficiencies on many requests. For many user claims, the requested amount does not even match the registered figure of their account on the exchange database.

Taxman yet to make its claims

Notably, the Canadian tax authorities are also probing the doomed exchange for failing to pay corporate taxes.

The bankruptcy monitor also urged the authority to file for a claim before the distribution of any funds to the affected creditors.

“The Trustee notes that Quadriga failed to file tax returns in the ordinary course of business prior to the Bankruptcy Proceedings and accordingly the quantum of tax liabilities is currently unknown. The determination of a CRA tax claim against Quadriga is necessary prior to the Trustee declaring any distribution to Affected Users or creditors generally as tax claims rank pari passu with the unsecured claims of Affected Users,” EY stated.

Meanwhile, many users are doubtful about the death of Gerald Cotten, the founder and CEO of QuadrigaCX, and asked the Canadian authorities to exhume his body.

As many as 16,959 people have claimed assets from the now-defunct cryptocurrency exchange QuadrigaCX, according to a document published on Tuesday by Ernst & Young (EY), the court-appointment bankruptcy monitor.

The former users of the exchange are filing claims for digital assets including Bitcoin , Bitcoin Cash, Bitcoin Gold, Bitcoin SV, Ethereum , and Litecoin, along with Canadian dollars and US dollars.

The audit firm detailed that it will convert all assets into Canadian dollars before distributing any amount to the creditors. However, it is not yet clear how the firm will value the digital currencies.

Based on the fiat valuation of the recovered crypto, the amount in claims filed by the former users can vary between $167 million to over $300 million.

Initially, EY asked the affected users to file for the claims by August 31 last year, but now it clarified that there is no hard deadline for that and will continue to receive requests.

The firm also revealed that it is still reviewing the filled claims and notified about the technical deficiencies on many requests. For many user claims, the requested amount does not even match the registered figure of their account on the exchange database.

Taxman yet to make its claims

Notably, the Canadian tax authorities are also probing the doomed exchange for failing to pay corporate taxes.

The bankruptcy monitor also urged the authority to file for a claim before the distribution of any funds to the affected creditors.

“The Trustee notes that Quadriga failed to file tax returns in the ordinary course of business prior to the Bankruptcy Proceedings and accordingly the quantum of tax liabilities is currently unknown. The determination of a CRA tax claim against Quadriga is necessary prior to the Trustee declaring any distribution to Affected Users or creditors generally as tax claims rank pari passu with the unsecured claims of Affected Users,” EY stated.

Meanwhile, many users are doubtful about the death of Gerald Cotten, the founder and CEO of QuadrigaCX, and asked the Canadian authorities to exhume his body.

About the Author: Arnab Shome
Arnab Shome
  • 6344 Articles
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About the Author: Arnab Shome
Arnab is an electronics engineer-turned-financial editor. He entered the industry covering the cryptocurrency market for Finance Magnates and later expanded his reach to forex as well. He is passionate about the changing regulatory landscape on financial markets and keenly follows the disruptions in the industry with new-age technologies.
  • 6344 Articles
  • 80 Followers

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