Quadriga creditors only receive 13%, one BTC worth only $5,000, and ETH less than $200.
About the bankrupt exchange QuadrigaCX: The unresolved case of the death of the exchange's CEO in 2018, a Netflix documentary investigates the disappearance of 250 million in cryptocurrency
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Over 87% of Quadriga Creditors are Retail Investors
According to the report from Ernst & Young Global Limited, the accounting firm handling the case, there are a total of 17,648 creditor claims totaling 303.1 million Canadian dollars, approximately 224 million US dollars.
The distribution of claims shows that 15 creditors have claims exceeding 1 million Canadian dollars, with a total of 508 creditors claiming over 99,999 Canadian dollars.
The majority of the creditors, 15,356 in total, are retail investors, accounting for 87% of all creditors, with claims below 9,999 Canadian dollars, approximately 7375.66 US dollars.
Quadriga Creditors to Receive Only 13%
Quadriga creditors are expected to recover approximately 13% of their claims in US dollars, based on the exchange rate at the time of Quadriga's bankruptcy in April 2019, as shown in the chart below.
Bitcoin will be calculated at a rate of 6,739 Canadian dollars, approximately 4970.96 US dollars, which is lower than the price of Bitcoin at the time of Quadriga's bankruptcy, which was still around 7,000 US dollars.
Ethereum's rate is even worse, with only 223.45 Canadian dollars, approximately 164.83 US dollars, about 8.9% of the current price.
Even the US dollar is slightly lower than the current exchange rate of 1.36.
Quadriga vs. FTX Creditors
The case of FTX is often compared to Mt. Gox, highlighting the lengthy legal process following the exchange's bankruptcy.
About Mt. Gox: Bankruptcy Nine Years and Still Not Fully Compensated! Mt. Gox Two Major Creditors Recover Compensation by the End of September, Approximately 21% of the Funds Lost
In comparison, the progress of Quadriga seems to be much faster, but the amount of compensation is expected to be far below the expectations of all creditors.
FTX creditors appear to be even less optimistic, as the US Internal Revenue Service (IRS) demanded 440 billion US dollars in taxes from FTX at the end of April, claiming the amount under "administrative priority," which takes precedence over unsecured creditors.
The IRS's substantial claim is several times the total amount of all creditors, and for retail investors, they must rely on FTX's restructuring team to negotiate this astronomical figure in court, aiming to maximize the interests of creditors outside of government agencies.