17,000 Quadrigacx users seek $ 307 million for failed Canadian crypto exchange


17,000 Quadrigacx users seek $ 307 million for Canadian Crypto Exchange failure 5

Some 17,000 people have filed for reimbursement for the collapse of the Canadian stock market for digital assets Quadrigacx. In total, the claims, denominated in both cryptocurrency and fiduciary, amount to almost $ 307 million.

According to a document released on Tuesday by Ernst & Young, the court-appointed monitor, most of the claims filed come from Bitcoin (BTC) Deposits that stock market users have maintained on the platform.

Over 24,436 BTC Claims worth $ 219.8 million have been made at current market prices, he said. Users are also requesting compensation in the form of Bitcoin Cash, Bitcoin Gold, Bitcoin SV, Ethereum and Litecoin, as well as Canadian dollars and U.S. dollars.

Quadrigacx filed for bankruptcy in January 2019 following the alleged death of founder and CEO Gerald Cotten, who has reportedly so far been buried with a combined total of $ 190 million in client funds. Over 115,000 customers were left in the cold after Cotten's death.

Ernst & Young took control of the stock market in early February of the same year, after Quadrigacx filed for bankruptcy. Reports have so far only recovered about $ 30 million, reports say, mainly because Cotten has not kept transaction logs and appears to be using client funds to finance a lavish lifestyle.

According to the latest document, all refunds will be paid in Canadian equivalent, but only after the country's tax collector, the Canada Revenue Agency, has claimed its share of unpaid taxes for the first time. However, the Agency has not yet filed a claim and there is no time limit on when claimants can expect to receive their reimbursement.

Ernst & Young, who asked affected users to file complaints before August 31, 2019, said that he had not finished checking the documents he had received because some of them contained technical errors or declared values ​​that were not consistent with those found in the Quadrigacx database.

"The trustee points out that there is a series of claim tests that contain certain techniques
shortcomings (i.e. proof of claim is unsigned) ", he said, adding:" … in several cases the claimant has filed a claim preferred … without any support for the status of the preferred claim. "

The accountants said that "all complaints from affected users are unsecured claims without privileged status".

Complaints against failed cryptocurrency exchanges tended to take a while to be refunded. Claims against Mt.Gox are yet to be paid six years later.

What do you think of Quadrigacx complaints? Let us know in the comment section.

Image credits: Shutterstock, Pixabay, Wiki Commons

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