Creditors of fraudulent cryptocurrency platform QuadrigaCX can get 13% of their money back

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Company was one of Canada’s largest cryptocurrency exchanges before it collapsed in early 2019.

The law firm representing creditors of defunct cryptocurrency company QuadrigaCX says each creditor with a proven claim will get back 13 per cent, based on a 2019 valuation, of what they invested.

QuadrigaCX was one of Canada’s biggest cryptocurrency exchanges before it collapsed in early 2019, following the death of its founder, Gerald Cotten. He died while on his honeymoon in India in December 2018.

The company turned out to be a Ponzi scheme.

In a notice posted late last week, law firm Miller Thomson said as of this month, there are $305.66 million in total claims against QuadrigaCX.

Elvis Cavalic of Calgary lost around $15,000 from QuadrigaCX. He was surprised to learn from CBC News that some of the creditors would be eligible to get back some of their lost money.

“My interpretation was that the money was gone,” he said. “It’s been years and they’ve blown through it in legal fees and perhaps some of the holders with larger volumes, you know, [I thought] they were prioritized.”

Cavalic said the last update he received from Miller Thomson was in November 2020.

He said he’s going to file a claim to hopefully recoup some of his money.

Cavalic said his experience soured him on cryptocurrency.

“I just don’t trust any of the exchanges,” he said. “Ever since Quadriga, you’ve seen this happen again and again in various countries, including Canada.”

Cotten, who lived in Nova Scotia, was the only person who had the codes needed to access where the company kept much of its customers’ money.

Investigators uncovered that Cotten had been moving money from the exchange into his personal accounts and engaging in other suspicious behaviour.

Cotten lived a life of luxury that included exotic vacations, luxury vehicles, a yacht and a Cessna aircraft.

His widow, Jennifer Robertson, said she did not know about her husband’s fraudulent activities.

After Cotten’s death, she agreed to forfeit $12 million in assets that included vehicles and real estate. She was allowed to keep $90,000 in cash, $20,000 in retirement savings, a 2015 Jeep Cherokee, $15,000 in furniture and some jewelry, including her wedding band.

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