Canadian cryptocurrency exchange QuadrigaCX argues that customer orders for withdrawal of funds not processed due to legal issues related to Bank Canadian Imperial Bank of Commerce (CIBC), who in early January blocked the account with a balance of $28 million.
In the course of the proceedings that took place in the highest court in Ontario, it was found that the Bank failed to identify the owner of the vehicle so he blocked the account. In this regard, the financial institution asks the court to accept the assets and to determine who is the owner of: exchange, payment service Costodian, accounts, or customers who paid their money to buy cryptocurrency.
The exchange, in turn, made accusations, claiming that the Bank wrongfully froze the account and called himself the owner of most of the assets it holds. The exchange also stated that it was the victim because of his occupation, because it is a platform for the exchange of cryptocurrencies.
“The court must be unyielding, regardless of the allegations about questionable transactions on our trading platform for cryptocurrencies, because they are unfounded and put forward only because of our activity”, — stated in the court documents.
The Bank CIBC have provided data on the operations of the account and claims that from December 7, 2017 February 20, 2018 388 people made on account of the exchange $67.1 million for the purchase of digital assets. Part of the funds were withdrawn before the blocking and at the moment an account has $28 million Users to buy cryptocurrency transferred money on the platform of the Quadriga, and then received an equivalent number of “dollars Quadriga”, which later was changed to the cryptocurrency.
Withdraw funds using the company Billerfy Labs, which is owned by Jose Reyes (Jose Reyes) is the owner Costodian. In January, the Bank froze two corporate accounts and one personal belonging Costodian and Reyes, respectively. The Bank claims that it has received a request for withdrawal of 7 traders and does not know how to do it, to approve it or not, because it cannot determine the true owner of money. Now CIBC wants to get the approval on the identity of the owners of the assets and transfer them to the court, which then took care of their distribution.
Quadriga did not share these requirements and wants to immediately release money that is stored on locked accounts. The exchange says that the money her clients are “hostage” to the Bank from January 8, 2018.
“At the moment there are some delays with withdrawals due to illegal freezing of accounts, which store tens of millions of dollars,” said Quadriga CEO Gerald Cotten, adding that users still have the option to buy the digital assets and bring them to a third-party wallet.
According to the news source, The Globe and Mail, the clients ‘ opinions about the frozen funds, in General, coincide. They believe that the incident involved “the canadian banking cartel”. On 21 August, the exchange has sent many users a message with information about what some major banks colluded to obstruct its activities and the spread of bitcoin in General.