In an application filed by the Canadian Imperial Bank of Commerce (CIBC) against Vancouver cryptocurrency exchange QuadrigaCX and it’s partners, it was decided CIBC is entitled to an interpleader order; meaning that $67MM held in frozen accounts at CIBC will be paid into court rather than released to the Responding parties.
According to documents filed with the Ontario Superior Court, at the center of the dispute is Jose Reyes, the sole officer, director and shareholder of both Billerfy, a payment processor which facilitates payments in and out of online platforms and Costodian, a payment platform that was incorporated to hold fiat funds for investors to buy and sell cryptocurrency at QuadrigaCX. Reyes’ handling of the funds included moving portions of them into this personal accounts which brought about skepticism as to the handling of the funds and whether or not ‘adverse claims’ had been made, or could possibly be made, on the funds. Furthermore, in a series of emails to CIBC it was stated by Reyes and Gerald Cotton, CEO of QuadrigaCX, that they were being sued as a result of the frozen accounts but then contradicted this evidence under sworn affidavit stating that no lawsuits had actually been filed against any of the Respondents to the application.
Ontario Superior Court Judge Hainey also stated that the decision of Quadriga’s lawyer Margaret Waddell to not allow Cotton to answer a question about the allocation of ‘Quadriga Bucks’ also sparked concern.
Unfortunately, 388 depositors will have to wait until the murky waters are cleared up to get their funds returned.