Canada’s most renowned and biggest cryptocurrency exchange, QuadrigaCX has blamed the delay in completing cash transactions to legal actions against it from a major bank in Canada.
The Vancouver based cryptocurrency exchange which was launched in 2013 and licensed by the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) has reportedly stated that it has for some time now been experiencing difficulties accessing $21.6 million of its funds. According to the cryptocurrency exchange, its funds where purportedly frozen due to an inability of the exchange to identify the funds’ owners.
Speaking on the decision to freeze the cryptocurrency exchange funds, the CIBC noted that from Dec. 4, 2017, to Feb. 20, 2018, 388 users reportedly deposited a total of $51.8 million into accounts belonging to the exchange with some of the funds deposited later withdrawn, bringing the remaining balance to $21.6.
In its lawsuit against the cryptocurrency exchange, CIBC requested the presiding court to withhold the disputed funds until it can be sufficiently proven whether the frozen funds belong to QuadrigaCX or the 388 users who had initially deposited the funds. In its defense, QuadrigaCX noted that the bank had mistakenly frozen its fund, claiming that majority of the fund belongs to the exchange as there aren’t any evidence of conflicting claims.
According to the cryptocurrency exchange, “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.”
Following the freezing of its funds by the CIBC, Gerald Cotten, CEO at Quadriga, stated that the legal suit has caused delays for a number of its users as he claims that none of the allegations has been proven in court so far.
Speaking further, Cotton added that the number of participants that have been prevented from participating in the crypto space by banks is quite staggering, adding that banks in Canada are “conspiring” against crypto businesses, which is unhealthy.T