02:46:50 EDT Sat 04 May 2024
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Globe says OSC told QuadrigaCX users to get 13% back

2023-05-16 07:53 ET - In the News

The Globe and Mail reports in its Tuesday edition that former users of QuadrigaCX will receive 13 per cent of the funds they had stored with the cryptocurrency exchange when it collapsed into bankruptcy after the death of its founder more than four years ago. The Globe's Joe Castaldo and Alexandra Posadzki write that bankruptcy trustee Ernst & Young told creditors Friday they will soon receive a payout for their claims. More than 17,600 claims were submitted. Creditors said they are owed $303-million, but will receive just $39.5-million because much of the money could not be found. The forthcoming payout marks an end of sorts for a bizarre saga that began in December, 2018, when Gerald Cotten, founder and chief executive officer of Quadriga Fintech Solutions Corp., died suddenly at 30 years old owing to complications from Crohn's disease while on his honeymoon in India. Mr. Cotten, who lived in Nova Scotia, built Quadriga into the country's largest cryptocurrency exchange, but after he died, EY found that Mr. Cotten was the only person with the passwords needed to access the digital wallets in which customer funds were kept. The Ontario Securities Commission later concluded that Mr. Cotten ran a Ponzi scheme.

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