Bankruptcy Court Weighs In On How To Value Bitcoins

Cryptocurrency has been recognized as "property" for the purposes of the Bankruptcy and Insolvency Act by the Ontario Superior Court of Justice (Commercial List) in Re Quadriga Fintech Solutions Corp. et al.,¹ the first Canadian case of its kind. The Court also fixed the date of bankruptcy as the date for valuing claims denominated in cryptocurrency.

• QuadrigaCX, a cryptocurrency exchange, commenced proceedings under the Companies' Creditors Arrangement Act (the CCAA) on February 5, 2019 and transitioned to a bankruptcy on April 15, 2019.
• Claims made against QuadrigaCX were denominated in various cryptocurrencies (e.g., Bitcoin, Litecoin and Ethereum), as well as US dollars and Canadian dollars.