On October 8, Canadian media outlets The Globe And Mail reported that the QuadrigaCX cryptocurrency exchange took legal action against the Imperial Bank of Commerce of Canada (CIBC) for freezing accounts with funds totaling 28 million dollars.
According to the source cited, the case is already in court and the lawsuit states that the bank froze in January this year various accounts of Costodian Inc., the payment processor of QuadrigaCX, and its owner, José Reyes. Specifically, two commercial accounts and three personal accounts were frozen.
For its part, the CIBC submitted a document before the Superior Court of Justice of Ontario, in which it affirms that the reason behind the freezing of accounts was the indetermination of ownership of the funds. This decision has been transferred to the court, to whom it requested to take possession of the money and to determine if these belong to QuadrigaCX, to its payment processor Costodian Inc., or to the 388 users who made deposits to buy cryptocurrencies.
QuadrigaCX claims to own most of the funds, except for a deposit of $ 99,985, so they ask that they be released. They explained that they are the legitimate owners of the amount of money indicated because they have already accredited their customers the corresponding Quadriga Bucks, units with which users can buy cryptocurrencies on the platform.
According to the court document filed by the exchange, the bank “has been holding the funds of the respondents hostage since January 8, 2018, while desperately trying to find an ex post facto justification to freeze unjustly and continue to freeze the accounts in first place”. QuadrigaCX points out “highly offensive” to the CIBC speculations, which it says are based on the fact that the platform operates with cryptocurrencies.
At the source they explain that the case takes place amid requests to withdraw funds from clients, probably as a result of the fall in the price of bitcoin. According to the files submitted by the CIBC before the courts, the bank received the order to withdraw seven of the 388 depositors by telephone and they were not sure of carrying out such operations. To resolve the situation, the bank went to court to decide the fate of the funds.
In this regard, a lawyer representing José Reyes, Costodian Inc., and Billerfy Labs Inc., said in the document filed with the court that there is no evidence of such claims of conflict. It should be noted that Billerfy Labs Inc., is another company owned by Reyes, which offers some withdrawal options from the exchange house.
On the other hand, the CEO of QuadrigaCX, Gerard Cotten, alleged via email to the Canadian newspaper that the freezing of accounts has affected the operations of the platform, generating delays for some withdrawal options, because most of the funds are found in the commercial accounts of Custodian Inc.
The aforementioned source was able to contact four QuadrigaCX customers who tried to withdraw cash from the exchange house. As they explained, three of them canceled their withdrawal requests, bought back cryptocurrencies and transferred them to another exchange house, as a measure to avoid the delays that this platform goes through. The fourth client interviewed, who invested $ 12,000, still waits, since July, to withdraw his funds, since he does not want to spend on commissions that involve sending to other exchange houses.
Cases like QuadrigaCX with the CIBC have been presented in other latitudes. In the Latin American region, several cases of clashes between banks and cryptocurrency exchanges in Chile and Brazil can be named.
In Chile, several banks closed accounts to the exchange houses OrionX, CryptoMarket and Buda, which triggered a series of legal confrontations. After that, it was not only decided that the accounts would be reactivated, but also that the Court ruled that the banks should pay 1.2 million pesos in compensation.
Chilean exchange houses have looked towards other environments more friendly with cryptocurrencies, such as the case of OrionX, which at the end of September opened a branch in Aztec soil and Buda, which in May started operations in Argentina. However, the Buddha stopped operations in Colombia because the Financial Superintendence of Colombia asked the banks to avoid operations with cryptocurrencies.
Meanwhile, in Brazil, ten exchange offices must provide information before the Administrative Council for Economic Defense (CADE) regarding the closure of their bank accounts. This requirement responds to the open investigation against six Brazilian banks.
Among other news, the Santander Bank received the order of a court to reactivate the current account of the Brazilian exchange house Bitcoin Max, which had been canceled without prior notice. On the other hand, Banco do Brasil was also ordered to activate its respective Bitcoin Max account, and if the measure was not complied with, the bank would have to pay fines every day.
Disclaimer: This press release is for informational purposes information does not constitute investment advice or an offer to invest. The views expressed in this article are those of the author and do not necessarily represent the views of infocoin, and should not be attributed to, Infocoin.