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Creditors of bankrupt Canadian cryptocurrency exchange QuadrigaCX are to receive 13% of their total claims as part of an “interim dividend”.
According to a notice to creditors dated May 12 from QuadrigaCX bankruptcy trustee Ernst & Young (EY), each “proven claim creditor will receive 13.094156% of its proven claim, less the amount of the fee payable to the Office of the Bankruptcy Superintendent in accordance with the BIA.”
“The interim dividend provides for a distribution of approximately 87.0% of the funds currently held by the Trustee. The rest of the funds will be held as a reserve for future expenses related to bankruptcy administration. The final distribution will be made at a later date,” added EY.
The notice states that 17,648 creditors have submitted claims in the amount of CAD 305.6 million (US$ 223 million).
According to EY, 15,356 creditors are in debt between $0 and $10,000, and 1,784 creditors are in debt between $10,000 and $49,999.
Only 15 creditors were owed more than $1 million, with the Canadian Revenue Agency owing $11.7 million in back taxes from 2016 to 2018.
While former users of the exchange primarily held crypto assets at the time of the firm’s 2019 collapse, their reported assets were converted into the asset’s cash value as of April 15 of that year.
So, if someone was holding 1 Bitcoin (BTC) at the time, they will end up with 6,739 CDN ($4,933) back, with 13% of that coming soon as an interim dividend.
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It has not been specified when the interim dividend will be distributed, but Miller Thomson, the law firm representing creditors, suggested on May 8 that it would be within the next few weeks.
QuadrigaCX was one of the largest cryptocurrency exchanges in Canada before going insolvent in early 2019. Shortly thereafter, co-founder and CEO Gerald Cotten died in India, taking private keys to QuadrigaCX offline storage systems to the grave.