Ernst & Young, the guardian of the notorious cryptocurrency exchange QuadrigaCX, said it only had about $ 29.8 million to distribute to applicants, despite receiving $ 171 million in claims.
In a November 6 update filed with the Ontario Supreme Court, EY said it has received 17,053 claims from clients who entrusted their money to the Canadian Stock Exchange.
The claims include approximately $ 90.2 million in Canadian dollars and more than $ 6 million in crypto, including 24427 Bitcoin (BTC), 65457 Ether (ETH), 8,7031 Litecoin (LTC), 7723 Bitcoin Cash (BCH) and 17934 Bitcoin Gold ( BTG). The 7098 bitcoin SV (BSV).
EY notes that QuadrigaCX founder Gerald Cotton, who caught global media attention for allegedly dying with the only keys to the exchange’s wallets, traded using money from his 76,000 clients, likely contributing to the mismatch between assets and debt:
“Mr. Cotten has begun to exchange these account balances with affected users who have deposited real assets, so it is possible that Quadriga’s assets will not meet the obligations of the affected users.”
Cotten passed away in December 2018, and in the previous months the exchange had faced compounding solvency problems. Recent studies show that most of the exchange’s money appears to be in the hands of the notorious shadow bank, Crypto Capital.
To date, EY has found $ 29.8 million through the sale of assets in Cotten’s ownership, settlement with Cotten Widow, and raising money from a third-party payment company used by the exchange.
The manager plans to convert all recovered assets into Canadian dollars and disburse funds to users based on cryptocurrency rates either from April 15, 2019, when QuadrigaCX filed for bankruptcy, or from February 5, 2019, when users were banned from accessing the exchange.
EY went to court to determine the date on which the conversion rate should be used.