BB reserve heist case to continue in NY court

The New York Supreme Court has allowed the continuation of a case filed by Bangladesh Bank against Rizal Commercial Banking Corporation (RCBC) of the Philippines in connection with the world’s biggest cyber heist of reserves.

According to Inquirer.net, a Philippines media outlet, Yuchengco-led Rizal Commercial Banking Corp. (RCBC) is studying its next moves after the New York Supreme Court allowed the case filed by Bangladesh Bank – concerning the $81 million cyber heist in 2016 – to proceed.

Commenting on the matter, Bangladesh Bank lawyer Barrister Ajmalul Hossain QC said, “I heard this earlier, and I am very happy that we have taken a step forward in recovering the stolen money.

“They [RCBC] thought their appeal would be granted so they did not show us any documents. Now we can pressure them and continue the case.”

In a stock exchange filing on Friday, RCBC had claimed that it received a decision from the US High Court on February 29 this year.

In this decision, the appellate division, first judicial department of the Supreme Court of the State of New York, ruled to dismiss three causes of action – conversion, aiding and abetting conversion, and conspiracy to commit conversion – against the bank and all defendants associated with RCBC.

It also dismissed the case against four RCBC defendants – Ismael Reyes, Brigitte Capina, Romualdo Agarrado and Nestor Pineda – for lack of personal jurisdiction.

RCBC said the court, however, ruled that the case can proceed against RCBC and the remaining defendants on the other causes of action, including the return of money received. “The bank is considering whether or not to appeal this decision and order,” it added.

The Bangladesh Bank filed a case against 19 individuals and organizations in the US court on May 27, 2020, in the case of theft of reserve money.

Among them, the New York County Supreme Court exempted two casino companies named Bloomberry and Eastern Hawaii. But the case was not dismissed.

Several charges have been laid including money laundering, theft, embezzlement, aiding or abetting such activities, fraud (against RCBC), and aiding or abetting fraud.

2016 BB cyber heist

In February 2016, cyber criminals tried to steal $100 million from Bangladesh Bank's account at the Federal Reserve’s New York branch by hacking the SWIFT system through 35 fake messages. Out of this, they managed to steal $10.10 million.

Of the money, $2 million went to Sri Lanka, which was recovered. However, the remaining $8.10 million went to various casinos in the Philippines through RCBC Bank. A total of $3.46 million in stolen money has been recovered so far.

The remaining $6.64 million has not yet been received.

In 2019, Bangladesh filed a case in the United States Federal Court against RCBC of the Philippines, 17 individuals and organizations including the country's casinos and 3 Chinese nationals.

The judgment given on March 20, 2020, said that the case was not accepted for trial as it was technical, although there is an opportunity to file a case in the relevant court of the United States.

Later, the Bangladesh Bank filed another case in the New York County Supreme Court on May 27, 2020.