QuadrigaCX Users to Receive Interim Distribution

blockchain.news:

Users of the now-defunct Canadian cryptocurrency exchange QuadrigaCX are expected to receive interim distribution of funds tied to bankruptcy proceedings in the coming weeks. Law firm Miller Thomson, which represents QuadrigaCX users, announced the news on May 8. Bankruptcy trustee Ernst & Young has consulted with estate inspectors to announce the interim distribution. In the near future, the trustee will post a Notice to Affected Users providing details about the manner and procedure of the distribution.

However, a small number of affected users are expected to receive a Notice of Disallowance of Claim, which means that the creditor’s claim has been revised or disallowed in the bankruptcy process. If users receive such a notice, they have the right to appeal the decision. Miller Thomson explained that users should review the reasons for the revision or disallowance and gather any necessary evidence to support their claim. The Trustee is likely to have issued a Notice of Disallowance if there was a discrepancy in the user's proof of claim.

QuadrigaCX was once the largest cryptocurrency exchange in Canada before it became insolvent in February 2019. The exchange's co-founder, Gerald Cotten, died in India, taking the private keys to QuadrigaCX's offline storage systems to his grave. According to the Ontario Securities Commission (OSC), QuadrigaCX owes its affected clients an estimated $160 million.

In addition to losing access to cold storage, the OSC alleges that Cotten realized $86 million in crypto trading losses on the QuadrigaCX platform, which was then covered with users’ funds. Since then, bankruptcy trustee Ernst & Young has recovered $34.3 million worth of assets. The OSC stated that they did not identify any