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QuadrigaCX: there isn’t enough money to repay all claimants of the defunct exchange

QuadrigaCX: there isn’t enough money to repay all claimants of the defunct exchange

Quick take

1 minute read

  • Towards the start of last year, you may have heard of the QuadrigaCX crypto platform. 
  • The owner of the exchange, Gerald Cotton passed away in December 2018 and as a result, the exchange was no longer accessible due to only him knowing the passwords and keys. 

Towards the start of last year, you may have heard of the QuadrigaCX crypto platform. The owner of the exchange, Gerald Cotton passed away in December 2018 and as a result, the exchange was no longer accessible due to only him knowing the passwords and keys. The trustee of the controversial and field crypto platform, Ernst and Young has just revealed that it only has around $30 million in funds to distribute to claimants. The issue with this is that they have $171 million worth of claims from previous customers of the platform.

The company revealed in an update earlier this month on the 6th of November with the Ontario Superior Court of Justice that it has received over 17,000 claims from customers who entrusted the money with the platform based in Canada.

The claims include a plethora of different cryptocurrencies including bitcoin, bitcoin cash and Litecoin. On top of this, it includes more than $90 million worth of Canadian dollars in these digital assets.

Ernst and Young highlight:

“Mr. Cotten proceeded to trade these account balances with Affected Users that had deposited real assets, as such, Quadriga’s assets likely never matched the liabilities owed to Affected Users.”

Following the death of the CEO, the platform was plunged into a round of controversy throughout the world as well as the crypto space.



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