The biggest digital currency exchange of Canada, QuadrigaCX, is accusing legal action from a leading bank for setbacks when consumers cash out money, as reported by the Globe and Mail. The Vancouver-based crypto exchange was established in 2013 and is recognized as the foremost exchange in country to be certified by the FINTRAC (Financial Transactions and Reports Analysis Centre of Canada).
Quadriga apparently mentions that it has been undergoing troubles accessing $21.6 Million of its finances since January when 5 accounts relating to Costodian Inc. (the payment processor of the exchange) and Jose Reyes (exchange’s owner) by the CIBC (Canadian Imperial Bank of Commerce). The bank ostensibly sealed the accounts owing to a failure to recognize the owners of the funds.
As per CIBC, from December 4, 2017, to February 20, 2018, a sum of $51.8 million was deposited by 388 users into their accounts. Later, few of these funds were extracted, leaving around $21.6 Million within the accounts.
As per the Globe and Mail, the court was requested by CIBC to hold back the disputed funds and settle on whether they are owned by Costodian, QuadrigaCX, or the 388 customers who had deposited it. Subsequently, Quadriga informed the court that the funds were frozen by the bank erroneously, and asserts to be the certain owner of the larger part of the resources as there is “no proof” of contending claims.
Also, Quadriga is said to tell the clients that the banks within Canada are “plotting” against the crypto businesses.
On the other hand, the IMF (International Monetary Fund) has cautioned the “rapid growth” of cryptocurrency and bitcoin assets can generate “new susceptibilities within the international financial system,” as the banks of the world become accustomed to the recent blockchain and bitcoin boom.
Cryptocurrencies and Bitcoin, comprising ethereum, Ripple Lab’s XRP token, EOS, stellar, and litecoin, are being scrutinized by the traditional financial system to estimate how they might be incorporated as both investment tools and means to shift money across borders more cheaply and quickly.