Canada's Courts to Take Custody of Crypto Exchange QuadrigaCX’s Frozen Funds

  • Canada, Ontario's Superior Court of Justice will be taking over custody and liability of about $20 million that reportedly belongs to crypto exchange, QuadrigaCX.
  • QuadrigaCX had been banking with the Canadian Imperial Bank of Commerce (CIBC), and the institution had frozen the exchange's assets as it couldn't verify the actual owner(s) of its accounts.

The Ontario Superior Court of Justice has reportedly moved toward taking custody of a large amount of funds that belong to digital asset exchange, QuadrigaCX.

Nearly $20 million Frozen

Recent court documents show that the Canadian Imperial Bank of Commerce (CIBC) has frozen accounts holding the large sum of assets - which include $69,000 USD and $25.7 million CAD (appr. $19.4 million USD).

According to the court papers, the CIBC was not able to identify the actual owner(s) of the frozen assets.

The court documents also state that the funds may have been deposited by QuadrigraCX’s customers, and that the assets were frozen because the CIBC couldn’t properly verify the identities of the individuals that made the deposits.

QuadrigaCX Takes Legal Action

However, QuadrigaCX’s management team has now taken legal action in order to reclaim the money - as the exchange’s users have been unable access their funds.

Moreover, the crypto trading platform’s managers allege that their business operations have been adversely affected due to the large sum of assets being inaccessible.

Emails exchanged between QuadrigaCX’s employees and CIBC have been presented (along with the court documents) as proof that the exchange had been trying to clearly communicate with the Canadian bank.

"Under Extreme Pressure" To Quickly Resolve Issue

Additionally, QuadrigaCX’s representatives noted that the company is “under extreme pressure from many clients to address this ASAP”, and that its customers had started filing lawsuits against it.

Despite seemingly convincing arguments and concerns presented by both QuadrigaCX’s management and the CIBC, the court has not sided with either party.

Judge Glenn Hainey, who has been assigned to handle the case, has instructed the CIBC to transfer custody and liability of the large sum of assets to the courts.

The Courts Will Try To Determine Owner Of Accounts

After the funds have been received, the court system’s officials will reportedly try to determine the actual owner(s) of the funds.

Notably, the CIBC had initially requested that the ownership of the frozen assets be transferred over to the courts, because it has the authority to formally investigate the matter.

Although it is possible that the funds could ultimately be returned to QuadrigaCX, Judge Hainey clarified: 

I am not in a position on this record to make any determination as to CIBC’s possible liability for [freezing the accounts associated with the assets].

Judge Hainey

As CryptoGlobe reported last month, lawyers representing QuadrigaCX stated: 

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.

QuadrigaCX's lawyers

OKEx, Skew Release 10 New Trading Data Charts as Partnership Evolves

Popular cryptocurrency exchange OKEx and crypto market derivatives data aggregator Skew have unveiled plans for the second phase of their partnership, release 10 new trading data charts as it evolves.

According to a press release published by OKEx the exchanges was the first one to share data from its futures and options markets through its own dashboard on Skew. The second phase of the collaboration between both organizations will add 10 new advanced charts with “even more in-depth metrics available to them.”

The second phase of the partnership between OKEx and Skew is set to bring various new features, among them the new charts. These include charts such as the BTC futures Aggregated Open Interest, the BTC Perpetual Swap Price vs Spot, and the BTC Options Volumes & Open Interest, among others.

chart.pngSource: OKEx

The new charts come shortly after OKEx expanded its derivatives portfolio with the launch of ETH/USD options on its platform, and with the announcement of EOS/USD options. The cryptocurrency exchange has been leading when it comes to derivatives trading volumes, thanks to perpetual swaps for top cryptoassets like BTC, ETH, and others.

In its announcement, OKEx claims the diversity it offers is appealing to institutional and professional traders who can keep their pricing strategies more flexible. Its main goal, it adds, is to make products “accessible to a wider audience of retail – as well as beginner – traders.” To do this, it invests resources in its Academy.

To bolster the partnership, the cryptocurrency exchange prepared a guide to highlight and explain how to read and analyze the new charts. OKEx’s Director of Financial Markets, Lennix Lai, commented:

We hope to provide even greater transparency for users through this second phase with Skew. That also means helping traders understand how to interpret sometimes complex charts and how to use the information to execute better trades.

Lai added that the guide will help users read and interpret the charts, as they can be “daunting at first and are typically left for advanced users.” As CryptoGlobe reported, last month OKEx announced an OKChain hackathon to boost the development of decentralized applications for its blockchain.

Featured image via Pixabay.