Bitstamp wants Court Approval to Summon Citibank and Bank of America over delayed transactions

Citibank and Bank of America to be summoned

November 19, 2020

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Bitstamp is looking for authorization to summon two banking giants, Citibank and Bank of America. The permit granted by US District Court for the Southern District is because of Citibank and Bank of America

As per a report by The Block, Bitstamp has hired CNG Processing to facilitate its domestic and foreign exchanges. However, the crypto exchange accused the Danish company of breaching the original terms of its commercial agreements that hamper the process of withdrawal.

The crypto exchange platform maintains that CNG postponed bank accounts in the United States besides introducing deposits and withdrawal limits.

In a court filing, the firm said, “CNG was substantially delayed in opening US bank accounts, and these accounts were hindered by deposit and withdrawal limits and other constraints on transfers to from and between the related Citibank and Bank of America accounts while opening US accounts.”

The crypto exchange has just ended its deal with the installment processor. It is currently requesting a discount of the security store of $1.7 million, alongside another $1 million in customer stores.

The submitted court records show that CNG is unwilling to return anything to the crypto exchange, saying that the two American moneylenders froze their bank accounts.

According to the filing statement, CNG has not offered any documentation from either Bank of America or Citibank to help its assertions on these records’ status.

“It is not possible for Bitstamp to comment on pending legal proceedings. We can assure our clients that the proceedings do not affect our business,” the exchange said.

For a few weeks now, several Bitstamp customers have experienced withdrawal bugs, and the exchange also admitted that the problem was due to the conflict with the payment processor.

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