Judge Dictated Decision In Favour Of Canadian Bank In Dispute With Crypto Exchange.

Judge Dictated Decision In Favour Of Canadian Bank In Dispute With Crypto Exchange.

2018-11-14 | Big Bob

Judge Dictated Decision In Favour Of Canadian Bank In Dispute With Crypto Exchange.

In line with a recent court document filed, a $19.6 Mln controversial sum in-between Canada’s largest cryptocurrency exchange named ‘QuadrigaCX’ and theCanadian Imperial Bank of Commerce [CIBC] has been transferred into the custody of the Ontario Supreme Court.

Recently this week, Canadian newspaper ‘The Globe and Mail’ reported that Vancouver-based ‘QuadrigaCX’ had been experiencing problems accessing $16.3 Mln of its funds since Jan. this year, once CIBC froze 5 accounts that belonged to the crypto exchange’s payment processor, Costodian Inc., and its owner named ‘Jose Reyes’. The bank purportedly hold the accounts because of an associated inability to spot the funds’ owners.

CIBC afterwards requested the court to withhold the controversial funds and choose whether or not they actually belonged to ‘QuadrigaCX’, Costodian, or the 388 users who had deposited the funds. In response, QuadrigaCX aforementioned the court that the bank froze the funds erroneously and claimed to be the undisputed owner of the major part of the funds.

In the recent court document filed, Judge Glenn Hainey of the Ontario judicature ruled in favor of the bank, agreeing that the owner of the funds isn't clearly established. In line with the ruling, CIBC now should pass the funds over to the accountant of the judicature, so that the court can determine the owner of the funds.

Regarding the legitimacy of CIBC’s actions in holding the accounts, Judge Hainey ended that he's “not in a position on this record to create any determination on CIBC’s doable liability for doing so.”

Adding further he said:

“Accordingly, it might be inappropriate on behalf of me to extinguish any liability that CIBC might have for holding the accounts within the absence of an evidentiary record that establishes that CIBC has no liability.”

Chief officer at QuadrigaCX, ‘Gerald Cotten’ told the Globe and Mail that “more significantly, the court has made no ruling nonetheless on whether or not CIBC acted fitly in holding the funds within the 1st place. At this time, we are considering our next steps.”

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