A May 12 notice published by Ernst & Young (EY), the official bankruptcy trustee of defunct crypto exchange QuadrigaCX, disclosed details of the first interim distribution cheques to creditors.
Each creditor with a proven claim will get 13% of the value of their claim as of April 15, 2019, the day the Canadian exchange was assigned into bankruptcy protection. The amount will be subject to a levy amount 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 the Trustee is currently holding,” said EY in the statement.
The rest of the funds in the trustee’s possession will be held as a reserve for future disbursements related to the administration of the bankruptcy, while a final distribution to creditors will be arranged at a later date.
According to the notice, 17,648 creditors have made a total of CAD $303.1 million ($223 million) worth of claims. However, EY estimates that 88% of these creditors are owed amounts between $0 and $10,000 and only 15 creditors are owed more than CAD $1 million.
Users with Bitcoin claims will get $7,123 per BTC and those with Ethereum claims will get $299 per ETH. At press time, BTC was trading at $27,188 and ETH was trading at $1,828.
More details on when and how the funds will be distributed will likely be disclosed within the next few weeks according to a May 8 update from Miller Thomson, the law firm representing the exchange’s creditors.
QuadrigaCX declared bankruptcy after its founder Gerald Cotton allegedly died in India in 2018. Cotton is said to have been the only person with knowledge and access to the private keys of the exchange’s cold wallet that held the majority of customer funds.