EY gets $171M worth claims from crypto exchange QuadrigaCX’s customers

EY, the trustee of failed crypto exchange, QuadrigaCX has received claims of almost $171M made by the creditors of the exchange.

By · Nov 6, 2020 . 5min read

EY gets $171M worth claims QuadrigaCX latest news

QuadrigaCX crypto exchange’s trustee Ernst & Young (EY), has just received $171M worth of claims from the customers. Ernst & Young (EY), the trustee of now-extinct crypto exchange, QuadrigaCX, reveals that it only has approximately $29.8 million in funds to refund almost $171 million to the creditors of the exchange.

The trustee filed its seventh report with the Ontario Superior Court of Justice on Thursday. Thus, offering an update on the administration of the bankruptcy. It also stipulates that the funds will be allotted to the consumers based on the price of cryptocurrencies when the exchange was bankrupt.

The Canadian crypto exchange’s problems commenced when its founder and chief suddenly died in late 2018, without giving the private key of the exchange’s funds to anyone else. The exchange also experienced further losses from its dealings with questionable crypto shadow-bank, Crypto Capital. In an earlier report, the Ontario Securities Commission (OSC) revealed that Gerald Cotten gambled with the clients’ funds.

EY receives 17,053 claims

EY reveals it has received 17,053 claims from consumers who had trusted their funds with the Canadian exchange. The claims were made for various currencies, involving both cryptos and fiat. The court motion details that creditors are soliciting $90.18 million in Canadian dollars, $6.02 million in US dollars, 24,427.0442 Bitcoins, 65,457.5983 Ethereum, 87,031.2937 Litecoin, and a few more.

Notwithstanding the enormous amount of claims, the trustee does not have sufficient funds to satisfy them. It collected only $29.8 million by trading the assets of the exchange’s now-deceased founder, Gerald Cotten, and settling with his widow. It also got some of the funds from the exchange’s third-party payment firms.

The trustee intends to transform all recovered assets into Canadian dollars. Then, allocate funds to users based on cryptocurrency prices from either April 15, 2019, when QuadrigaCX declared bankruptcy. Or February 5, 2019, when users were not able to access the exchange. EY is in short of funds and has also requested the court to determine the whole data.

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