Cryptocurrency Exchange

QuadrigaCX – Canadian Crypto Exchange Denounces Major Bank for Locking Funds

QuadrigaCX

As and when blockchain technology and cryptocurrency have sprawled their legs, they also face certain complexities from financial institutions. Vancouver based QuadrigaCX, a crypto exchange set up in early 2013 which is the first exchange in Canada that received license issued by the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) having daily trading volume approximately $600,000 (as per the valid source of CoinMarketCap) is reported to have blamed a legal action to a leading back as per the valid source of the Globe and Mail on 8th October.

Quadriga is experiencing difficulties while accessing $21.6 million funds since January 2018 especially when Canada’s major bank – Canadian Imperial Bank of Commerce (CIBC) froze five accounts pertaining to exchange’s payment processor namely Costodian Inc led by Jose Reyes.

Based on the official source of CIBC, almost 388 customers are expected have deposited $51.8 million in their respective accounts in between 4th Dec. 2017 to 20th Feb. 2018. However, some amount of funds were withdrawn later leaving the amount approx. $21.6 million.

Further speaking to the subject matter, Quadriga said in its statement explaining that bank froze the funds mistakenly. With this, CIBC recommends the court refraining from granting the disputed funds and to make sure whether they belong to QuadrigaCX, Custodian or of all those 388 users. It further elaborated matter saying that “This court should not succumb to the bank’s unsubstantiated and highly offensive speculation that there must be shady dealings afoot because Quadriga’s business is a trading platform for individuals trading in cryptocurrencies.”

While explaining the legal disputes, Gerald Cotten, CEO at Quadriga further commented that not even a single allegation has been proven in court and the matter has been delayed unnecessarily. He further said, “There are currently delays for some specific withdrawal options, particularly due to the fact that CIBC is withholding tens of millions of dollars that belong to us that were in an account of one of our payment processors.”

Amid this, according to Globe and Mail, Quadriga criticized the entire matter saying that that banks in Canada are “conspiring” against crypto businesses!!

About the author

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Shalin Soni

Shalin joined CryptoNewsZ as Associate Finance (Cryptocurrency Research & Analysis) in 2018 and has 10 years of collective experience to work on financial modeling and financial planning & analysis activities (fp&a) domains. He has worked with various organizations in India and added values by leveraging his skills and expertise. He has strong domain expertise in research & analysis, valuation, and fp&a. He has worked with various organizations in India and added values by leveraging his skills and expertise. He has strong domain expertise in research & analysis, valuation, and fp&a.
You can also mail him at [email protected] to discuss anything related to his reports.

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