Fun

Quadriga CX Trustee Raises $30 Million for Reimbursements to Creditors, Claimants Want $171 Million Instead

News Feed - 2020-11-07 05:11:52

Quadriga CX Trustee Raises $30 Million for Reimbursements to Creditors, Claimants Want $171 Million Instead


The trustee of the now-defunct crypto exchange, Quadriga CX says the sell-off of the platform’s assets raised $30 million. This contrasts with the $171 million in claims that has been filed with the trustee by Quadriga creditors. Consequently, Ernst and Young (EY), the accounting firm mandated with administering Quadriga’s liquidation process, says it will not be able to reimburse in full all the claims. Disproportionate Claims


As shown in one report, the trustee says it “received completed claim forms from 17,053 creditors of the exchange while a total of 42,957 claims were filed.” Explaining the higher number of claims filed against the actual number of creditors, the report suggests that some creditors may have signed more than one claim form.


In its court motion, EY also reveals that the claims filed by users and creditors are composed of both cryptocurrencies and fiat. The motion lists the cryptos claimed as follows 24,427 BTC, 7,723 bitcoin cash,17,934 bitcoin gold, 7,098 bitcoinsv, 65,457 ethereum and 87,031 litecoin.


Still, EY argues that “roughly one-third of the forms have a defect” which the accounting firm says will be too costly “to follow up and fix.” Consequently, the trustee wants the court to rule on its proposition to evenly distribute the available funds.


In its request, the trustee says: EY is asking that user claims all have equal footing, as sorting out who would have priority for distribution on a claim by claim basis would be inefficient, costly and a significant drain on estate assets otherwise available for distribution. Confirmation of Impropriety


Meanwhile, EY’s motion appears to validate some of the longstanding allegations against Cotten. Explaining the discrepancy between Quadriga’s assets and liabilities, the motion explains:


“Mr (Gerald) Cotten proceeded to trade these account balances with affected users that had deposited real assets, as such, Quadriga’s assets likely never matched the liabilities owed to affected users.”


Cotten’s death in December 2018 sparked controversy after it emerged that there had been no provisions for a handover or retrieval of private keys to the exchange’s cold wallet. The exchange subsequently shut down a month later leaving thousands of users in limbo.


Now, after nearly two years of waiting, Quadriga CX users and creditors are now expected to get the reimbursement of a portion of their funds.


What are your thoughts about the reimbursement offer made to Quadriga CX creditors? Share your views in the comments section below. South Korea To Ban Crypto Exchanges From Handling Privacy Coins REGULATION | 24 hours ago Iran Adopts Bitcoin for International Trade Amid Heavy Sanctions, Falling Rial, Soaring Inflation REGULATION | 1 day ago Tags in this story Bankruptcy, bitcoin cash, Bitcoin Satoshis Vision, BTC, Ernst and Young, ETH, Gerald Cotten, litecoin (LTC), QuadrigaCX, quadrigacx fraud, quadrigacx ponzi


Image Credits: Shutterstock, Pixabay, Wiki Commons Use 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 disclaimerShow comments

News Feed

Claim Your First NFT Top-Level Domain for Web3 on Quik․com
Claim Your First NFT Top-Level Domain for Web3 on Quik․com sponsored NFT domainsenable users to establish a presence on the decentralized web and the metaverse, with Quik.com prov
Bitfarms adds board member to deter Riot Platforms takeover
Arijit Sarkar48 minutes agoBitfarms adds board member to deter Riot Platforms takeoverDespite initially planning to buy all Bitfarms’ shares at $2.30 per share, Riot withdrew the offer, stating that cooperating with Bi
Robert Kennedy Jr: Government Could Ban, Seize Bitcoin — CBDCs Could Lead to Financial Slavery, Political Tyranny
Robert Kennedy Jr: Government Could Ban, Seize Bitcoin — CBDCs Could Lead to Financial Slavery, Political Tyranny Presidential hopeful Robert F. Kennedy Jr. has issued a warning
Blockchain-Based Platform Created by Saudi Students Places Third in National Women’s Coding Competition
Blockchain-Based Platform Created by Saudi Students Places Third in National Women"s Coding Competition A blockchain-based tender bidding platform that was designed by female unive
US Senator Calls for Investigation Into Bank Failures — Says Fed Chair Powell ‘Bears Direct Responsibility’
US Senator Calls for Investigation Into Bank Failures — Says Fed Chair Powell "Bears Direct Responsibility" U.S. Senator Elizabeth Warren has called for a “thorough, indepe
Sparrow Raises USD 3.5 Mil in Series A Funding
Sparrow Raises USD 3.5 Mil in Series A Funding23 June 2020, Singapore – Sparrow, the leading options trading platform has secured USD 3.5 million in Series A funding to accele
Savannah Fortis10 hours agoBiden AI executive order ‘certainly challenging’ for open-source AI — Industry insidersThe executive order on AI safety from the Biden administration has laid out its standards for the in
Bitcoin In Stalemate With Liquidation Traps On Both Sides Of The Market
Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and pu
Derek Andersen7 hours agoIRS releases draft of proposed reporting rules for digital asset brokersHouse Financial Service Committee Chair Patrick McHenry said the rules are part of “the Biden Administration’s ongoing
Hermi De Ramos11 hours agoHow decentralized platforms democratize crypto funding initiativesKriss Baird, the principal figure of Cardano’s Project Catalyst, spoke with Cointelegraph about the initiative, the extent of
Expert Sees Bitcoin Dipping To $50K While Bullish Momentum Persists
Este artículo también está disponible en español. After rocketing up to the highs of $108,000 in December 2024, Bitcoin now has fallen to about $96,000. This has led to r
Block shares see after-hours bump as Q1 results top estimates
Jesse Coghlan2 hours agoBlock shares see after-hours bump as Q1 results top estimatesBlock’s first-quarter 2024 results beat Wall Street analyst estimates on earnings and revenue which saw its share price surge after t