According to a post published on May 8 by Miller Thomson, At the law firm representing users of the defunct cryptocurrency exchange QuadrigaCX, the provisional distribution of funds linked to the bankruptcy proceedings will be scheduled “in the coming weeks.”
Bankruptcy trustee Ernest & Young announced the interim distribution in consultation with estate inspectors. In the near future, the administrator will publish a Notice to affected users with details on the manner and procedure of the distribution. According to Miller Thomson, A small number of affected users are expected to receive a Notice of Claim Dismissal, which means that the creditor’s claim has been reviewed or dismissed in the bankruptcy proceeding.
“If you have received a Notice of Dismissal, you have the right to appeal the decision,” Miller Thomson explained, adding:
“The first step is to review the reasons for the review or disallowance and gather the necessary evidence to support your claim. In this case, the Administrator will most likely have issued a Notice of Dismissal if there was a discrepancy in your proof of claim.” .
QuadrigaCX, once the largest cryptocurrency exchange in Canada, filed for insolvency in February 2019, shortly after co-founder Gerald Cotten passed away in India, taking the private keys of QuadrigaCX’s offline storage systems with him to the grave. . According to the Ontario Securities and Exchange Commission (OSC), QuadrigaCX owes its affected clients about $160 million. In addition to losing access to cold storage, the OSC alleges that Cotten made $86 million in cryptocurrency trading losses on the QuadrigaCX platform, which he then covered with user funds.
Since then, bankruptcy administrator Ernest & Young has recovered $34.3 million worth of assets. “We do not identify any other assets beyond those identified by Ernst & Young,” the OSC wrote.
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