Bitstamp wants to summon Citibank, Bank of America

​Bitstamp, a crypto exchange located in Luxembourg, is consulting the US District Court for the Southern District of New York to summon two Wall Street lenders, Citibank and Bank of America regarding a legal dispute between the European crypto exchange and its payment processor CNG Processing.

According to The Block, Bitstamp hired Internet payment service provider
CNG Processing for facilitating its domestic and international payment transfers. However, Bitstamp accused the Danish firm of violating the original terms of their business agreements that are delaying the withdrawal process.

The exchange is claiming that CNG delayed the opening of bank accounts in the United States and additionally put deposit and withdrawal limits. The names of the two Wall Street banking giants were dragged as CNG was opening the accounts with them.

Bitstamp has already terminated its deal with CNG. It is now demanding a refund of the security deposit of $1.7 million, along with another $1 million in client deposits.

The submitted court documents show that CNG is denying to return any amount to Bitstamp, saying that the two American lenders froze their relevant bank accounts.

“CNG has offered no documents from either Bank of America or Citibank to support its claims regarding the status of these accounts,” the court filing stated.