Disputed Crypto Exchange Funds Under Control of The Canadian Court. Canadian court took control over the $26 million. QuadrigaCX, a crypto exchange in Canada claimed this.
Currently, there is no proper ownership for the funds due to the ongoing dispute. Canadian Imperial Bank of Commerce (CIBC) got permission to hold the funds until their genuine ownership is established. CIBC blocked the funds now. The situation occurred when two parties came forward to claim ownership of the same funds.
There has been an ongoing debate about which party has privileges to about $26 million CAD. $69,000 USD (about $20 million USD in general) that the CIBC solidified in the wake of addressing whether QuadrigaCX, its installment processor, Custodian, and Custodian executive Jose Reyes were qualified for the assets.
The decision was taken by the Ontario Superior Court of Justice, Judge Glenn Hainey. Last Friday, Hainey discovered that from the documents included, it couldn’t be ascertained who is really qualified to receive the assets. CIBC will require to trade the assets to the court. This is until the point that it can build up proprietorship among the inquirers.
“The next step is that CIBC will transfer the funds into the court’s account and then the parties, including the customer of Quadriga who bought digital currencies with them during the time in question, can make an application for the return of funds that they believe are theirs. That includes Quadriga, who can bring an application to claim the funds.”
a financial crime lawyer and managing partner of Duhaime Law
Disputed Crypto Exchange Funds Under Control of The Canadian Court. Quadriga customers are able to benefit from this. They can claim their funds.
In general disputes, banks take a 30-day window to send a notice to clients, but in case of crypto exchanges, it may take 90-120 days. This allows clients to find alternative banking services.
In this situation, the bank is risking itself by holding the funds in its open account. In general cases, anti-money laundering specialists handle these kinds of disputes.
Finally, Christine Duhaime concluded, though there is a way to de-risk the bank itself in this dispute. The bank is taking actions to reduce the future of similar kind of disputes:
“It’s not just about your client. It’s about ensuring that your client’s client operates in a way that does not pose a reputational, legal or regulatory risk to a bank.”