Crypto exchange Bitstamp seeks to subpoena two U.S. banks in the payment lawsuit.

Crypto exchange Bitstamp is seeking to subpoena two U.S. banks as part of its legal battle against one of its payment processors.

The crypto exchange giant Bitstamp is seeking to subpoena two U.S. banks as part of its legal battle against one of its payment processors. The crypto exchange filed an application with a New York court seeking to subpoena Citibank and Bank of America to produce documents for use in its court battle in Denmark. In the application filed at the Southern District of New York, the exchange stated that the subpoenaed documents would be towards its case against CNG Processing. 

 

CNG Processing started imposing deposit and withdrawal limits to Bitstamp. 

According to the Luxembourg-based Bitstamp, the fallout began after CNG started reporting issues in processing payments for U.S. bank accounts. The Danish payment firm CNG Processing also started imposing deposit and withdrawal limits on Bitstamp customers, going against the original agreement. This led to Bitstamp dropping CNG as its payments processor, with the exchange stating on Twitter that it hasn’t used CNG’s services for over a year. After the termination of the agreement between the two, the crypto exchange demanded $1.7 million in security deposit and over $1 million in customer deposits.

 

CNG alleges U.S. banks have frozen accounts. 

The Danish payment firm has alleged that the money being held in those accounts cannot be removed from those accounts because Bank of America and Citibank have frozen and prohibited withdrawals. Accordingly, the disputed accounts’ status and disposition is a vital issue in the Danish Proceeding,” the application stated. CNG Processing has failed to provide any material support for its claims of American banks freezing its accounts, Bitstamp has alleged. This impasse has necessitated the subpoenas, with the exchange expecting “to obtain information regarding the status and disposition of the disputed accounts.”

ADVERTISEMENT
Jai Pratap
Jai Pratap
A Mass Media Graduate who loves to write. Jai is also a sports enthusiast and a big movie buff. He loves to learn new things.

Leave a reply

Please enter your comment!
Please enter your name here

Enable Notifications    Ok No thanks