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 Globeand Mail’ reported that Vancouver-based ‘QuadrigaCX’ had been experiencing problems accessing $16.3 Mln of its funds sinceJan. this year,onceCIBC froze5 accountsthat belongedto the crypto exchange’s payment processor, CostodianInc., and its owner named ‘Jose Reyes’. The bank purportedly hold the accountsbecause of anassociatedinabilityto spotthe funds’owners.
CIBCafterwardsrequestedthe court to withhold thecontroversialfundsand choosewhether or not they actually belonged to ‘QuadrigaCX’, Costodian, or the 388 userswhohad deposited the funds. In response, QuadrigaCX aforementioned the court that the bank froze the fundserroneouslyand claimed to be the undisputed owner of themajor part ofthe funds.
In the recent court document filed,Judge GlennHainey of the Ontariojudicatureruledin favor of the bank, agreeing that the owner of the fundsisn’tclearly established. In line with the ruling, CIBCnowshould pass the funds over to theaccountantof thejudicature,so that thecourt candeterminethe owner ofthe funds.
Regarding the legitimacy of CIBC’s actions inholdingthe accounts,JudgeHaineyendedthathe’s“notin aposition on this recordto createany determinationonCIBC’sdoableliability for doingso.”
Adding further he said:
“Accordingly,it mightbe inappropriateon behalf of meto extinguishany liability that CIBCmighthave forholdingthe accountswithin theabsence of an evidentiary record that establishes that CIBC has no liability.”
Chiefofficerat QuadrigaCX, ‘Gerald Cotten’ told the Globe and Mail that “moresignificantly, the court hasmade no rulingnonethelessonwhether or notCIBC actedfitlyinholdingthe fundswithin the1stplace.Atthis time,weareconsidering our next steps.”