Nearly 17,000 creditors on the now-closed Canadian crypto exchange QuadrigaCX have filed lawsuits to recover their lost assets.
Details of the lawsuits were revealed in an interim status report published on May 12 by Ernst & Young (EY), the trustee in bankruptcy of QuadrigaCX.
Details of the claims filed so far
The report reveals that as of May 6, EY had received 16,959 lawsuits denominated in various fiat and cryptocurrencies, many of which included multiple currency components. Currencies covering US and Canadian dollars, and Bitcoin (BTC), Bitcoin SV (BSV), Bitcoin Cache (BCH), Bitcoin Gold (BTG), Litecoin (LTC) and Ethereum (ETH).
( Claims by creditors QuadrigaCX to EY to May 6, 2020 Source: EY )
The report shows that the trustee in bankruptcy plans to convert all claims into Canadian dollars, although the relevant exchange rates have not yet been resolved.
EY has not yet completed the review of all claims. However, the company has already found a number of pieces of evidence that contain technical shortcomings, such as a lack of signatures. In other cases, this is followed by some claimants whose evidence differs from the amounts recorded in the QuadrigaCX records.
EY has postponed the previous deadline of 31 August 2019 for claimants to submit their evidence and continues to process new submissions, although the report notes that the volume of new applications has ” decreased significantly”.
QuadrigaCX corporate tax liabilities
EY finally notes that QuadrigaCX failed to file its tax returns prior to the commencement of the insolvency proceedings and therefore the outstanding amount of corporate tax liabilities is currently unknown.
Settlement of outstanding debts with the Canadian tax authorities will be ‘necessary before the trustee declares any distribution to the Affected Consumers or creditors, as the tax receivables are classified [on an equal footing] with the unsecured receivables of the affected consumers’, EY states.
Users of cryptocurrencies doubt the official story of the demise of QuadrigaCX
As reported yesterday, a new survey of cryptocurrency users has revealed depths of suspicion around the history of the closure of QuadrigaCX. The stock’s founder and CEO Gerald Cotton – reportedly the only person who had access to the stock’s wallets and keys – reportedly died while volunteering at an orphanage in India.
About 60% of those surveyed in the new study believe Cotton is definitely still alive, while 90% agree that the body reported to be his should be exhumed and an autopsy performed.
Last year’s EY report indicated that QuadrigaCX had about $ 20.8 million in assets and about $ 160 million in liabilities as of April 12, 2019.