Moribund ASX-listed cryptocurrency exchange operator Byte Power Group has officially coughed-up $33,000 in fines issued by Australia’s financial watchdog for failing to inform the market operator and shareholders of changes to the bitcoin exchange’s development in 2017. There is a dispute between QuadrigaCX, Canada’s largest crypto exchange and the Canadian Imperial Bank of Commerce which is famous as CIBC. The disagreement regarding a sum amount of 19.6 million dollars has been handed into the custody of the Ontario Superior Court.
The Globe and Mail, Canadian newspaper on Oct 8th reported that QuadrigaCX had been facing difficulties acquiring 16.3 million dollars of its funds since January. In January CIBC hold five accounts which belong to the Costodian Inc., Costodian Inc is the exchange payment processor, an owner is Jose Reyes. The bank is claiming the hold accounts due to unable to identify the owners of the funds.
Soon after claim, CIBC requested the court to withhold the funds. And also they asked to decide whether the funds belong to Custodian, QuadrigaCX or the 388 users who already had deposited the funds. The QuadrigaCX responded to the court that the bank held the funds mistakenly and claimed to be the undisputed the amount.
Ontario Supreme Court judge, Glenn Hainey told the bank to pass the funds over the Accountant of the Superior Court that can identify the owners, as the owners are not established. Ripple is likely the first cryptocurrency distributed via an ICO. At the start of 2013, Ripple Labs began to develop the Ripple payment system and generated approximately 100 billion XRP tokens. These were sold through an ICO to fund Ripple’s platform development.
In another statement to the ASX, BPG’s company secretary Michael Wee said the company’s compliance with ASIC’s infringement notice was not an admission of liability, and that it “cannot be regarded”contravention of the Corporations Act.
Last month ASX said it was still concerned about the operation of the cryptocurrency exchange, including its disclosure around the development, as well as the legal status of “BPX loyalty tokens”.
Hainey concluded that at this condition it is not easy to resolve as to CIBC’s liability for doing that. He also added that CIBC might have to hold the accounts in the absence of records which establishes that COBC is having no responsibility. Setting up a cryptocurrency exchange platform has captured the interest of many people, owing to the immense success of virtual currencies like bitcoin. If you are planning to set up one of your own, then there are certain basic things you need to consider. Read this article to know what those things are.
QuadrigaCX chief executive, Gerald Cotton told that the court had made no ruling on which CIBC acted in holding the disputed funds.
Cointelegraph, a news site which is covering cryptocurrency exchanges, the blockchain, and other decentralized applications reported that lawyers are representing payment startup. This lawsuit which is raised against Ripple is for the sale of unregistered securities. Federal level court allows Ripple to prove that its crypto XRP tokens are not a security under US law.