Ernst & Young, the trustee of the controversial failed cryptocurrency exchange QuadrigaCX, revealed that they only had about $ 29.8 million in funds to distribute to the plaintiffs, despite receiving $ 171 million in complaints.
In a November 6 update filed with the Ontario Superior Court of Justice, EY revealed that it had received 17,053 requests from clients who had entrusted their funds to the Canadian stock exchange.
Claims include nearly $ 90.2 million in Canadian dollars and over $ 6 million in cryptocurrency, including 24,427 Bitcoin (BTC), 65,457 Ether (ETH), 87,031 Litecoin (LTC), 7,723 Bitcoin Cash (BCH), 17,934 Bitcoin Gold ( BTG) and 7,098 Bitcoin SV (BSV).
EY notes that QuadrigaCX founder Gerald Cotten – who garnered media attention around the world for dying with the only keys to the exchange’s wallets – traded using funds from his 76,000 clients, likely contributing to the discrepancy between assets and liabilities:
“Mr. Cotten proceeded to exchange these balances with affected users who had deposited real assets, as such, Quadriga’s assets probably never paid the liabilities owed to the affected users.”
Cotten passed away in December 2018, with the exchange facing growing solvency problems in the previous months. Subsequent investigations revealed that much of the exchange’s funds appear to have been in the hands of the notorious shadow bank of the cryptocurrency industry, Crypto Capital.
EY has so far found $ 29.8 million by selling assets from the Cotten estate, settling with the Cotten widow, and recovering funds from a third-party payment company used by the exchange.
The trustee plans to convert all recovered assets into Canadian dollars and allocate funds to users based on cryptocurrency prices from April 15, 2019, when QuadrigaCX filed for bankruptcy, or February 5, 2019, when users were denied access. to the exchange.
EY asked the court to determine the date to use for the conversion rate.