QuadrigaCX’s trustee Ernst & Young (EY) has just received a huge number of claims from the customers of failed crypto exchange, QuadrigaCX. It is revealed that EY has received claims of $171 million worth claims. For paying these claims, the firm is only having funds worth $29.8 million. This has been revealed via an update that is filed with the Ontario Superior Court of Justice on November 06, 2020. The claims made by the customers include around $90.2 million of Canadian Dollars and more than $6 million in cryptocurrency. The cryptocurrencies here include Bitcoin, Ethereum, Litecoin, Bitcoin Gold, Bitcoin SV, and Bitcoin Cash. EY Claims QuadrigaCX Founder Traded Using Customers Fund EY has reported that Gerald Cotten, founder of QuadrigaCX, has traded using the customers’ funds. As per the firm: “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.” The founder died back in December 2018 and the exchange has faced some serious solvency issues during that time. According to the investigation, most of the funds of the exchange were found in the hands of Crypto Capital. Recovered Assets to be Converted into Canadian Dollars EY has managed to gain $29.8 million by selling the assets from the estate of Cotten. Some funds are also retrieved from the third-party payments that were used by the exchange. Now the firm is planning to convert all these recovered assets into Canadian Dollars. It is also specified that the funds will be allocated to the customers based on the price of cryptocurrencies when the exchange has declared bankruptcy. It is yet to be seen how the firm will be able to fulfill all the claims that it has received. EY is short of funds and has also requested the court to determine the whole data.
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