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

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Canadian banks have confirmed hesitation regarding the control of bancrupt cryptocurrency exchange QuadrigaCX’s belongings, nationwide public broadcaster CBC reports on Feb. 22.

QuadrigaCX has faced monetary issue following the surprising demise of its founder Gerry Cotten, who was once the allegedly just one with get right of entry to to the alternate’s chilly wallets.

As Cointelegraph reported previous this week, QuadrigaCX has despatched its final crypto belongings from its scorching wallets to Big Four auditing company Ernst & Young, the court-appointed observe overseeing the case. During Friday’s court docket listening to, legal professionals for the Bank of Montreal and the auditing company reportedly stated that the banks are uncomfortable managing the price range, mentioning the uncertainty in their starting place.

Elizabeth Pillon, a legal professional representing Ernst and Young, is quoted by means of CBC announcing that she does not blame the banks for his or her hesitation since there are allegedly money laundering problems. Pillon additionally reportedly famous:

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

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

Ernst and Young will then use those price range to pay for the continued court docket complaints, 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 price range additionally manifested all over the time of its operations, when the alternate was once not able to get a checking account on account of banks’ reluctance and as a substitute grew to become to third-party cost processors.

As Cointelegraph reported in November ultimate yr, when the Canadian Imperial Bank of Commerce iced up the accounts of the cost processor, the court docket dominated in choose of the financial institution, mentioning issues over figuring out the identities of the price range’ house owners.

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