Now-defunct Canadian cryptocurrency exchange Quadriga CX has reached a settlement to compensate former users with a 13 percent payout, according to a notice to creditors issued by accounting firm Ernst & Young late Friday.

Ernst & Young documents show Quadriga owes 17,648 creditors a total of C$303.1 million ($222.3 million).

These creditors include Canada Post and the Canada Revenue Agency (CRA). Fifteen of the claims were worth more than $1 million, with 28 of those claims ranging from $500,000 to $999,999, according to filings. In addition, there were 15,236 claims for less than $10,000.

The value of the cryptocurrency payment will be based on the value pegged to the market price on April 15, 2019.

Bitcoin claimants will receive 6,739.08 Canadian dollars ($7,122.9) per bitcoin, while ethereum claimants will receive 223.45 Canadian dollars ($299.45) per bitcoin, EY said.

Quadriga CX ceased operations in 2019 following the unexpected death of its founder Gerald Cotten, leaving the company without access to millions of dollars worth of user cryptocurrencies. The incident drew international attention and prompted an investigation into the company’s finances.

The settlement provides partial relief to former Quadriga CX users, many of whom have been waiting more than two years to receive their funds. However, it is unclear how much of the debt owed will be recovered through bankruptcy proceedings.

EY said it would distribute the funds to creditors in the coming weeks, pending approval from the Canadian courts overseeing the bankruptcy process.

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Filed under: Bitcoin - @ May 14, 2023 3:36 pm