Judge Rules in Favor of Canadian Bank in Dispute With Crypto Exchange

An Ontario Superior Court Judge has dominated with the Canadian Imperial Bank of Commerce in a dispute with Canada’s largest crypto trade concerning frozen funds.

A $19.6 million disputed sum between Canada’s largest crypto trade QuadrigaCX and the Canadian Imperial Bank of Commerce (CIBC) has been handed into the custody of the Ontario Superior Court, per a courtroom doc filed Nov. 9.

On Oct. 8, Canadian newspaper the Globe and Mail reported that Vancouver-based QuadrigaCX had been experiencing difficulties accessing $16.three million of its funds since January, when CIBC froze 5 accounts belonging to the trade’s cost processor, Costodian Inc., and its proprietor, Jose Reyes. The financial institution purportedly froze the accounts as a result of an incapability to determine the funds’ homeowners.

CIBC subsequently requested the courtroom to withhold the disputed funds and determine whether or not they belong to QuadrigaCX, Costodian, or the 388 customers who had deposited the funds. In response, QuadrigaCX advised the courtroom that the financial institution froze the funds mistakenly and claimed to be the undisputed proprietor of the higher a part of the funds.

In the latest courtroom file, Judge Glenn Hainey of the Ontario Superior Court dominated in favor of the financial institution, agreeing that the proprietor of the funds will not be clearly established. Per the ruling, CIBC now has to cross the funds over to the Accountant of the Superior Court, so the courtroom can determine the proprietor of the cash.

Regarding the legitimacy of CIBC’s actions in freezing the accounts, Judge Hainey concluded that he’s “not able on this file to make any dedication as to CIBC’s potential legal responsibility for doing so,” including:

“Accordingly, it will be inappropriate for me to extinguish any legal responsibility that CIBC could have for freezing the accounts within the absence of an evidentiary file that establishes that CIBC has no legal responsibility.”

Gerald Cotten, chief govt at QuadrigaCX, advised the Globe and Mail that “extra importantly, the courtroom has made no ruling but on whether or not CIBC acted appropriately in freezing the funds within the first place. Regarding this level, we’re contemplating our subsequent steps.”

Today, Cointelegraph reported that legal professionals representing cost startup Ripple in its ongoing securities lawsuit try to maneuver the case to a U.S. federal courtroom. Court data verify the appliance to maneuver the case from the state to federal stage, which might permit Ripple to show definitively that its XRP token will not be a safety beneath U.S. legislation, ought to it win.

The lawsuit in opposition to Ripple Labs was initially filed in May by legislation agency Taylor-Copeland for the sale of unregistered securities. The claimants all misplaced cash from buying XRP at excessive costs earlier this 12 months, however opted to sue to incorporate all potential events affected since 2013.

Original supply: https://cointelegraph.com/news/judge-rules-in-favor-of-canadian-bank-in-dispute-with-crypto-exchange

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