Express
Trustee of Collapsed Exchange case is a hanging matter
Summary: Ernst and Young (EY), the bankruptcy trustee for the defunct exchange QuadrigaCX has filed factum to the Ontario Superior Court of Justice on Tuesday in connection with its motion for an order to use the prevailing exchange rate on the date of bankruptcy for the conversions. EY will head to court on Jan. 26 to argue ...
Ernst and Young (EY), the bankruptcy trustee for the defunct exchange QuadrigaCX has filed factum to the Ontario Superior Court of Justice on Tuesday in connection with its motion for an order to use the prevailing exchange rate on the date of bankruptcy for the conversions. EY will head to court on Jan. 26 to argue the valuation date for cryptocurrency claims should be considered from the date of the exchange’s bankruptcy on April 15, 2019. The firm is taking a different stance from affected user, crypto startup BlockCAT, which wants the digital assets to be valued as of Feb. 5, 2019, when Quadriga received court protection to restructure under Canadian federal law. As such, a former Quadriga user with a claim solely for bitcoin would get 14% more in CAD if the April date is determined as the legitimate date by the courts.
The case in novel in Canadian law. “No bankruptcy court in Canada has previously been asked to determine as at what date claims made in cryptocurrency should be valued in Canadian dollars,” EY states in the factum.
