Reserved IP Address°C
02-08-2025
BSV
$39.63
Vol 21.18m
-0.21%
BTC
$96420
Vol 30687.96m
-1.65%
BCH
$322.83
Vol 124.1m
-1.48%
LTC
$104.36
Vol 587.43m
-0.48%
DOGE
$0.25
Vol 1231.03m
-0.37%
Getting your Trinity Audio player ready...

Bitstamp digital currency exchange is seeking to subpoena two U.S. banks as part of its legal battle against one of its payment processors. The 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. The Danish payments company had been processing payments for Bitstamp until it allegedly failed to meet the terms of their business agreement.

According to the Luxembourg-based Bitstamp, the fallout began after CNG started reporting issues in processing payments for U.S. bank accounts. The Danish firm also started imposing deposit and withdrawal limits to Bitstamp customers, going against the original agreement between the two.

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 a year.

Following termination of the agreement between the two, Bitstamp demanded $1.7 million in security deposit and over $1 million in customer deposits. CNG allegedly refused to comply with the request, blaming U.S. banks, including Citibank and Bank of America.

“CNG 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 from those accounts. Accordingly, the status and disposition of the disputed accounts is a vital issue in the Danish Proceeding,” the application stated.

CNG has failed to provide any material support for its claims of American banks freezing it accounts, Bitstamp alleges. This impasse has necessitated the subpoenas, with the exchange expecting “to obtain information regarding the status and disposition of the disputed accounts.”

See also: CoinGeek Live panel on the Future of Digital Asset Security & Custody

Recommended for you

US bill proposes 20-year imprisonment for DeepSeek users
A new bill by Missouri Senator Josh Hawley proposes a fine of up to $1M and up to 20 years...
February 8, 2025
Italy, 2 others ban DeepSeek; OpenAI responds with o3-mini
While Italy banned DeepSeek for failing to reveal how it was using Italians’ data, Taiwan and Texas restricted it in...
February 8, 2025
Advertisement
Advertisement
Advertisement