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QuadrigaCX Exchange Blames Major Canadian Banks For Delayed Fund Withdrawals.

According to a recent news published by a local source ‘The Globe and Mail,’ Vancouver-based cryptocurrency exchange QuadrigaCX was launched earlier in the year 2013 and is also known by the 1st exchange in Canada to be commissioned by the Financial Transactions and Reports Analysis Centre of Canada [FINTRAC]. At the reporting time, Quadriga’s daily commerce volume is around $600,000 USD.

Quadriga reportedly states that it’s been experiencing difficulties accessing $21.6 Mln of its funds since Jan this year after the Canadian Imperial Bank of Commerce [CIBC] froze 5 accounts that belonged to the exchange’s payment processor, Costodian Inc., along with its owner, Jose Reyes. The bank supposedly froze the accounts due to the associated inability to spot the funds’ owner.

From Dec. 4, 2017, to Feb. 20, 2018, 388 users reportedly deposited around $51.8 Mln into the accounts, in line with CIBC. Later, several of these funds were withdrawn, leaving around $21.6 Mln within the accounts.

According to the Globe and Mail, CIBC requested the court to withhold the controversial funds and choose whether or not they belong to QuadrigaCX, Costodian, or the 388 users who had deposited the funds. QuadrigaCX considerably told the court that the bank froze the funds mistakenly, and claims to be the undisputed owner of the larger part of the funds as there’s no evidence of competitive claims.

Adding further QuadrigaCX said:

“This court must not succumb to the bank’s uncorroborated and extremely offensive speculation that there should be shady dealings afoot as a result of Quadriga’s business is a trading platform for customers trading in digital currencies.”

The chief executive officer at QuadrigaCX ‘Gerald Cotten,’ aforementioned that the legal matter has resulted in delays for a “small fraction” of the exchange’s 350,000 users. None of the allegations has been validated in court, as per the Globe and Mail.

Explaining further Cotten said:

“There are presently delays for a few specific withdrawal optionssignificantly to the very fact that CIBC is withholding tens of a lot of bucks that belong to United States and that were in an account of one of our payment processors.”

The number of participants within the crypto ecosystem who have been shut by banks is staggering, in line with Cotten. As per ‘The Globe and Mail,’ QuadrigaCX has told the customers that banks within Canada are conspiring against crypto businesses.

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