Canadian Banks Wary of QuadrigaCX Assets’ Origins, Cite Money Laundering Concerns

Canadian banks have confirmed hesitation regarding the administration of bancrupt cryptocurrency trade QuadrigaCX’s property, nationwide public broadcaster CBC stories on Feb. 22.

QuadrigaCX has confronted monetary problem following the sudden demise of its founder Gerry Cotten, who was the allegedly just one with entry to the trade’s chilly wallets.

As Cointelegraph reported earlier this week, QuadrigaCX has despatched its remaining crypto property from its sizzling wallets to Big Four auditing agency Ernst & Young, the court-appointed monitor overseeing the case. During Friday’s court docket listening to, legal professionals for the Bank of Montreal and the auditing agency reportedly stated that the banks are uncomfortable managing the funds, citing the uncertainty of their origin.

Elizabeth Pillon, a lawyer representing Ernst and Young, is quoted by CBC saying that she would not blame the banks for his or her hesitation since there are allegedly cash laundering points. Pillon additionally reportedly famous:

“The monitor has serious concerns about finding another institution to hold these funds.”

According to the article, on the finish of Friday’s listening to, Justice Michael Wood of the Nova Scotia Supreme Court issued an order that may finally see the QuadrigaCX cash deposited in a Royal Bank account.

Ernst and Young will then use these funds to pay for the continued court docket proceedings, and “the money could also be used to partially compensate 115,000 users of the QuadrigaCX exchange who are owed $260 million” in crypto and money, CBC notes.

The unwillingness to carry QuadrigaCX’s funds additionally manifested through the time of its operations, when the trade was unable to get a checking account due to banks’ reluctance and as an alternative turned to third-party cost processors.

As Cointelegraph reported in November final yr, when the Canadian Imperial Bank of Commerce froze the accounts of the cost processor, the court docket dominated in favor of the financial institution, citing issues over figuring out the identities of the funds’ homeowners.

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