Vancouver-based QuadrigaCX exchange has filed lawsuit against a Canadian Imperial Bank of Commerce for delaying transactions to some users. The exchange says the CIBC froze several accounts belonging to Quadriga’s payment processor, Costodian Inc and its owner Joes Reyes and the exchange is unable to access a total of $28 million funds since January.
In a factum filed with the Ontario Superior Court of Justice, the bank disclosed it was unable to determine the owner of the funds which caused it to freeze the accounts. The CIBC wants the court to take control of the funds and decide whether the money belongs to Costodian Inc or its owner or the payment processor or the 388 people who deposited money to buy cryptocurrencies.
Funds And Empty Wallet
According to CIBC’s factum, between December 4, 2017, and February 20, 2018, a total of 388 people deposited $67.1-million into the accounts to buy virtual currencies. Some users withdrew their money which leaves the total at $28 million. Some of these funds landed into Costodian’s accounts at CIBC.
This lawsuit has led some investors to empty their wallets. Quadriga says the bank was wrong on its decision to freeze the funds and claims majority of the funds, according to the court filings. According to the factums, the exchange claims to have already deposited the users with cryptocurrencies, which would make Quadriga the owner of the funds. This exchange also says this dispute is due to the stigma revolving the cryptocurrencies & money laundering and hence the unfair treatment.
The document further reads, “This court should not succumb to the bank’s unsubstantiated and highly offensive speculation that there must be shady dealings afoot because Quadriga’s business is a trading platform for individuals trading in cryptocurrencies.”
According to Quadriga’s lawyer, Margaret Waddell, the case was heard over the summer and the judge needs to pass his decision yet.
Quadriga blames the “Canadian Banking Cartel” for the delays and that multiple Canadian banks are “conspiring” to prevent the banks from transmitting funds in a deliberate attempt to stifle bitcoin adoption in the country.
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