According to a May 8 post by law firm Miller Thomson, which represents users of defunct cryptocurrency exchange QuadrigaCX, an interim distribution of funds related to the bankruptcy proceedings will be scheduled “in the coming weeks.”
The interim distribution was announced by bankruptcy trustee Ernst & Young after consultation with estate inspectors. In the near future, the trustee will issue a notice to affected users detailing the modalities and procedures for distribution. According to Miller Thomson, a small percentage of affected users are expected to receive a Notice of Disallowance of Claim, meaning creditors whose claims have been amended or dismissed during bankruptcy proceedings.
"If you receive a denial notice, you have the right to appeal that decision," explained Miller Thomson, adding: "The first step is to review the reasons for the modification or disallowance and gather any necessary evidence to support their claim. case, if your claim proves discrepancies, the trustee will likely issue a denial notice."
QuadrigaCX, once Canada's largest cryptocurrency exchange, went bankrupt in February 2019 shortly after its co-founder Gerald Cotten died in India, taking private keys to QuadrigaCX's offline storage system to the grave. According to the Ontario io Securities Commission (OSC), QuadrigaCX owes affected clients approximately $160 million. In addition to being unable to use cold storage, the OSC also claims that Cotten realized $86 million in crypto trading losses on the QuadrigaCX platform, which were then recovered by users' funds.
Since then, bankruptcy trustee EY has recovered $34.3 million worth of assets. "We did not identify any other assets other than those identified by Ernst & Young," the OSC wrote.
