EY is ready to pay customers of the QuadrigaCX crypto exchange $30 million with a debt of $171 million

in ey •  4 years ago 

Ernst & Young (EY), an audit firm, estimated that QuadrigaCX's creditors are entitled to a $171 million payout and has $29.8 million to distribute among them.

EY was appointed by the court to the role of Trustee of the defunct cryptocurrency exchange. On November 6, she filed an update in the Ontario Superior court. The company reported receiving 17,053 requests from users who left their assets on QuadrigaCX. They reflected losses of 90.2 million canadian dollars and more than $6 million in cryptocurrencies, including 24,427 bitcoins (BTC), 65,457 Ethereum (ETH), 87,031 Litecoin (LTC), 7,723 Bitcoin Cash (BCH), 17,934 Bitcoin Gold (BTG), and 7,098 Bitcoin SV (BSV).

EY States that the deceased founder of QuadrigaCX, Gerald Cotten, used the funds of 76,000 clients for trading, which was one of the factors of the exchange's insolvency.

"Mr. Cotten used real assets deposited by affected users for bidding, so Quadriga's assets probably never matched its debt to affected users," explains EY.

Some of EY's user funds were recovered through the sale of Cotten's property, an agreement with His widow, and the withdrawal of assets from third-party payment services that the exchange was a client of. They will be converted to canadian dollars and distributed to users at the exchange rate either on April 15, 2019, when QuadrigaCX declared itself bankrupt, or on February 5, 2019, when the withdrawal of funds from the exchange was blocked. The decision on this issue should be made by the court.

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