Creditors of bankrupt Canadian crypto exchange QuadrigaCX will receive 13% of their total claims as part of an “interim dividend.”
According to a May 12 warning to creditors of QuadrigaCX's bankruptcy trustee, Ernst & Young (EY), each "creditor with a proven claim will receive 13.094156% of their proven claim less the amount of the lien payable to the Office of the Superintendent of Bankruptcy pursuant to the BIA".
“The interim dividend provides for a distribution of approximately 87.0% of the funds currently held by the Trustee. The remaining funds will be held as a reserve for future disbursements related to the bankruptcy administration. A final distribution will be made at a later date,” added EY.
The notice indicates that there have been claims worth 305.6 million CDN (223 million dollars) made by 17,648 creditors.
According to EY, 15,356 creditors are owed between $0 and $10,000, while 1,784 are owed between $10,000 and $49,999.
Only 15 creditors are owed more than $1 million, and the Canada Revenue Agency owes C$11.7 million in back taxes from 2016 to 2018.
While former users of the exchange mostly held crypto assets at the time of the company's collapse in 2019, their claimed holdings were converted to the asset's monetary value as of April 15 of that year.
As such, if someone had 1 Bitcoin (BTC) at that point, they will eventually recoup 6,739 CDN ($4,933), with 13% of that soon coming as an interim dividend.
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It has not been specified when the interim dividends will be distributed, however Miller Thomson, the law firm representing the creditors, suggested on May 8 that will happen in the next few weeks.
QuadrigaCX was one of the largest crypto exchanges in Canada before becoming insolvent as of early 2019. Shortly after its co-founder and CEO, Gerald Cotten, died in indiataking the private keys of QuadrigaCX's offline storage systems with him to his grave.
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