In a recent notice to creditors of the now-defunct Canadian cryptocurrency exchange Quadriga CX, accounting giant Ernst and Young (EY) revealed that the estate?s claimants would be entitled to 13% of their claims value. Reports show that the full amount owed to creditors totals at Canadian Dollars 303.1 million, spread across 17,648 claims. Of these claims, 15 are valued at over CAD 1 mil, 28 between CAD 500,000 and 999,999 and 15,236 below CAD 10000. Despite the medium-large sized claims, the Canada Revenue Agency (CRA) determined that Quadriga had not reported its income during the fiscal years 2016–2018 and demands CAD 11.7 million in back taxes.

The payments to creditors shall be performed through a mechanism pegged to April 15, 2019 crypto prices with 1 BTC fetching 6,739.08 Canadian dollars and 1 Ether fetching 223.45 Canadian dollars. In contrast, on the day of publication, the rates of Bitcoin and Ether stand at 26,737 and 1,800 Canadian dollars respectively, with both valuations seeing massive increases since the proposed payout prices.

The increased liquidity of cryptocurrency and its associated benefits continue to be a major draw card and the recent Quadriga CX case is yet another example of people choosing to work within the cryptocurrency network. Nonetheless providence of an appropriate regulatory framework and necessary security measures are key to establish cryptocurrency as a reliable and dependable medium of exchange. Therefore, equally as paramount as the sector?s growth and success is the need for appropriate legal measures, as to ensure its safety and so mitigate the risks of such notable incidents.



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