Miller Thomson, the law firm representing QuadrigaCX, said a small number of affected users are likely to receive notices of claim denials.
In a post earlier this week on May 8, Miller Thomson, a law firm representing users of defunct cryptocurrency exchange QuadrigaCX, announced that they will begin an interim distribution of funds related to the exchange’s bankruptcy proceedings in the coming weeks.
according to the bankruptcy trustee Ernst and YoungThis interim disbursement will be in consultation with the Estate Inspectors. Very soon, the Trustee will also post a notice to the affected users with details of the distribution method and process.
Law firm Miller Thomson said a small number of affected users are likely to receive a notice of claim rejection, meaning a creditor’s claim in the bankruptcy process has either been modified or denied. law firm Explained,
“If you have received a notice of rejection, you have the right to appeal the decision. The first step is to review the reasons for revision or rejection and gather the evidence necessary to support your claim. In this case, if If there was a discrepancy in your proof of claim, the trustee is most likely to issue a notice of rejection.
QuadrigaCX crypto exchange collapse
QuadrigaCX, once the largest cryptocurrency exchange in Canada, went bankrupt back in February 2019 after founder Gerald Cotton died in India while taking the private keys to QuadrigaCX’s offline storage system.
Later, as estimated by the Ontario Securities Commission (OSC), QuadrigaCX owed its customers an estimated $160 million. As well as losing access to cold storage, the OSC also alleges that Gerald Cotton realized $86 million in crypto trading losses on the QuadrigaCX platform.
In 2020, Jennifer Robertson, widow of QuadrigaCX founder Gerald Cotton Confirmed that she would hand over assets worth over $9 million (12 million CAD). Over the years, bankruptcy trustee Ernst & Young recovered assets worth $34.3 million. “We did not identify any assets other than those identified by Ernst & Young,” the OSC wrote.
On QuadrigaCX collapse, online streaming giant Netflix is planning release A documentary on the whole episode. However, not much details have been revealed about this yet.
The current market scenario has been on the rise recently after crypto exchange bankruptcies. US SEC Launched a major crackdown on crypto trading firms especially after the collapse of crypto exchanges ftx,
Bhushan is a Fintech enthusiast and has a great understanding of understanding the financial markets. His interest in economics and finance drew his attention to the newly emerging blockchain technology and cryptocurrency markets. He is in the process of continuous learning and keeps motivating himself by sharing his acquired knowledge. In his spare time he reads thriller fiction novels and occasionally explores his culinary skills.
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