According to a recent news published by a local source ‘The Globe and Mail,’ Vancouver-based cryptocurrency exchange QuadrigaCX was launched earlier in the year 2013 andis also known by the1stexchange inCanadato becommissionedby theFinancialTransactions and Reports Analysis Centre ofCanada[FINTRAC]. At the reporting time, Quadriga’s dailycommercevolume is around $600,000 USD.
Quadriga reportedly states thatit’sbeen experiencing difficulties accessing $21.6 Mln of its funds sinceJan this yearafterthe Canadian Imperial Bank of Commerce [CIBC] froze5accountsthat belongedto the exchange’s payment processor, CostodianInc., along with its owner, Jose Reyes. The banksupposedlyfroze the accountsdue tothe associatedinabilityto spotthe funds’owner.
From Dec. 4, 2017, to Feb. 20, 2018, 388 users reportedly deposited around $51.8 Mln into the accounts,in line withCIBC. Later,several ofthese funds were withdrawn,leaving around$21.6 Mlnwithin theaccounts.
According tothe Globeand Mail, CIBCrequestedthe court to withhold thecontroversialfundsand choose whether or not theybelong to QuadrigaCX, Costodian, or the 388 userswhohad deposited the funds. QuadrigaCXconsiderablytold the court that the bank froze the fundsmistakenly, and claims to be the undisputed owner of thelargerpart ofthe funds asthere’sno evidence ofcompetitiveclaims.
Adding further QuadrigaCX said:
“This courtmust notsuccumb to the bank’suncorroboratedandextremelyoffensive speculation that thereshouldbe shady dealings afootas a result ofQuadriga’s businessis atradingplatformfor customers tradingin digital currencies.”
The chief executive officerat QuadrigaCX ‘Gerald Cotten,’aforementionedthat the legal matter has resulted in delays for a “small fraction” of the exchange’s 350,000 users. None of the allegations has beenvalidatedin court, as perthe Globeand Mail.
Explaining further Cotten said:
“Therearepresentlydelaysfor a fewspecific withdrawaloptions,significantlytothe very factthat CIBC is withholding tens ofa lot ofbucksthat belong toUnited States andthat were inanaccountof oneof our payment processors.”
The number of participantswithin thecryptoecosystemwhohave beenshutby banks is staggering, in line with Cotten.As per‘The Globeand Mail,’ QuadrigaCX has told thecustomersthat bankswithinCanadaare conspiring against crypto businesses.