The Bitstamp cryptocurrency exchange appealed to the court of the southern district of new York to help it interview Citibank and Bank of America as part of the ongoing proceedings with the processing service, of which it was a client, writes The Block. The exchange claims that the Danish company CNG Processing did not fulfill the terms of the agreement on domestic and international transfers in the interests of its clients.
"CNG made significant delays in opening Bank accounts in the US and, when it did open them, these accounts were subject to Deposit/withdrawal limits and other restrictions on transfers. None of this was stipulated in the agreement between the parties," Bitstamp writes.
Subsequently, the exchange decided to terminate the agreement with the service, demanding the return of $1.7 million from the security Deposit and $1 million of client funds. Bitstamp lawyers say that CNG refuses to transfer this money, citing the fact that its accounts in these banks were frozen.
"CNG did not provide documents from either Bank of America or Citibank to support its statements regarding the status of these accounts. Seeking information that would shed light on the accuracy and reliability of CNG's statements regarding the relevant accounts at Citibank and Bank of America is of paramount importance to the ongoing proceedings between CNG and Bitstamp," the exchange adds.
At the same time, Bitstamp "categorically insists" that the withdrawal of Fiat funds from the platform continues.