17,000 Quadrigacx Users Seek $307M from the Failed Canadian Crypto Exchange

17,000 Quadrigacx Users Seek $307M from the Failed Canadian Crypto Exchange

About 17,000 people have filed claims for refunds from the collapsed Canadian digital asset exchange Quadrigacx. Altogether, the claims, denominated in both cryptocurrency and fiat, amount to nearly $307 million.

According to a documentreleased Tuesday by Ernst & Young, the court-appointed monitor, the bulk of the claims submitted stem from bitcoin (BTC) deposits that users of the exchange held on the platform.

More than 24,436 BTC claims worth about $219.8 million at current market prices have been filed, it said. Users are also requesting compensation in the form of bitcoin cash, bitcoin gold, bitcoin SV, ethereum, and litecoin, along with Canadian dollars and US dollars.

Quadrigacx went bankrupt in January 2019 following the alleged death of founder and chief executive officer Gerald Cotten, until now believed to have been buried together with a combined $190 million of customers’ funds. More than 115,000 customers were left in the cold after Cotten’s death.

Ernst & Young assumed control of the exchange early February of the same year, once Quadrigacx filed for bankruptcy. The accountants have so far only recovered around $30 million, say reports, mainly because Cotten kept no record of transactions and appeared to use customer funds to finance a luxurious lifestyle.

As per the latest document, all refunds will be paid in the Canadian dollar equivalent, but only after the country’s tax collector, Canada Revenue Agency, first claims its share in unpaid taxes. However, the Agency has yet to file a claim and there’s no timeline on when claimants can expect to receive their reimbursements.

Ernst & Young, which asked affected users to file claims by August 31, 2019, said it had not finished verifying the papers it received, as some contained technical errors or stated values that are not consistent with those found on the Quadrigacx database.

“The trustee notes that there are a number of proofs of claim that contain certain technical

deficiencies (i.e. proofs of claim are unsigned),” it said, adding:”…in a number of cases, the claimant has asserted a preferred claim … without any support for the preferred claim status.”

The accountants stated that “all affected user claims are unsecured claims without any preferred status.”

Claims against failed cryptocurrency exchanges have tended to take some time before they are refunded. Compensation claims against Mt.Gox are still to be paid six years down the line.

What do you think about the Quadrigacx claims? Let us know in the comments section below.More Than $220M in Bitcoin Withdrawn from Crypto Exchanges Since the HalvingNEWS | 30 mins agoNew $3 Trillion Coronavirus Relief Bill: Second Stimulus Checks Could Be Coming to AmericansNEWS | 4 hours agoTags in this storyCanada, Canada Revenue Agency, claims, Court trustee, Cryptocurrency Exchange, Ernst & Young, Gerald Cotten, QuadrigaCX

Image Credits: Shutterstock, Pixabay, Wiki CommonsUse Bitcoin and Bitcoin Cash to play online casino games here.Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.Read disclaimer Show comments