Victims of the notorious QuadrigaCX cryptocurrency exchange collapse are finally on the cusp of seeing a partial refund, albeit a fraction of their initial investments, The Globe and Mail reports.
The insolvency trustee, Ernst & Young (EY), has confirmed that it received over 17,600 claims, a staggering sum of $303 million, but will only be able to distribute a meager $39.5 million due to the vast majority of funds still missing.
This represents a recovery of approximately 13% of the losses incurred by former users of the defunct cryptocurrency exchange, offering a meager consolation following Quadriga's tumultuous downfall.
The QuadrigaCX debacle began four years ago when the company's founder, Gerald Cotten, suddenly died. It was later revealed that Cotten was the only individual who knew the passwords to the digital wallets containing customers' funds, effectively locking away hundreds of millions of dollars.
Further investigations unearthed Cotten's operation of a Ponzi scheme, precipitating Quadriga's bankruptcy and leaving a multitude of investors in the lurch.In an arduous recovery process, EY was able to reclaim $46 million in assets, part of which came from properties surrendered by Cotten's widow, Jennifer Robertson. However, these funds fall significantly short of the total claims, leading to a significantly reduced payout to victims. The Canada Revenue Agency, one of Quadriga's creditors, is slated to receive $1.5 million out of its claimed $11.8 million.
Complicating the payout process further is an unresolved issue regarding the transfer of 104 bitcoins from a supposed inaccessible Quadriga wallet. EY continues to probe this matter, indicating that the saga of Quadriga is far from over. While the victims are on the brink of receiving some compensation, the question of how much they will ultimately recover from the ashes of Quadriga remains uncertain.