Cryptocurrency exchange Quadrigacx has blamed an ongoing legal dispute over $21.6 million worth of funds that were frozen by the Canadian Imperial Bank of Commerce (CIBC) in January for delays experienced by some of its customers when requesting fiat currency withdrawals.
Quadrigacx Blames Court Dispute With
Bank for Fiat Withdrawal Delays
The Globe and Mail reports that court documents show Quadrigacx has been unable to access 28 million Canadian dollars (approximately $21.6 million) since January after CIBC froze multiple bank accounts owned by Quadrigacx’s payment processor, Costodian Inc., and its owner, Jose Reyes.
CIBC Asks Court to Determine
Rightful Owner of Frozen Funds
CIBC is requesting that the court take possession of the funds in question and determine whether the money is owned by Costodian, Quadrigacx or the 388 people who directly deposited the funds into the accounts for the purpose of cryptocurrency investment.
Quadrigacx Claims Unfair Treatment
“This court should not succumb to the bank’s unsubstantiated and highly offensive speculation that there must be shady dealings afoot because Quadrigacx’s business is a trading platform for individuals trading in cryptocurrencies,” the court filing reads. “CIBC ‘has been holding the respondents’ funds hostage since Jan. 8, 2018, while it hopelessly attempts to find an ex-post facto justification for wrongfully freezing and continuing to freeze the accounts in the first place.”
Quadrigacx’s lawyer, Margaret Waddell, has indicated that the court heard the case during the summer, and that the judge has reserved decision.
What is your reaction to the ongoing dispute between Quadrigaxc and CIBC? Share your thoughts in the comments section below!
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