NY reserve heist lawsuit not over yet: BB

The Bangladesh Bank lawsuits filed with the New York Supreme Court over the reserve heist are yet to be settled and will continue, said the central bank officials referring to Cozen O’ Connor, a legal service provider to the BB.

The New York County Supreme Court on April 8 discharged Bloombery and Eastern Hawaii from the case on the grounds of jurisdiction, but no verdict has been given on the case against RCBC (Rizal Commercial Banking Corporation), Lorenzo Tan and Raul Tan, according to Bangladesh Bank officials.

They said the proceedings against RCBC and the rest 17 other individuals and institutions will go on.

However, The Busyness Post tried to contact Bangladesh Bank Executive Director and Spokesperson Md Serajul Islam for comment, but his cellphone was found switched off.

The BB on May 27 of 2020 filed the case with the New York County Supreme Court against the Manila-based-RCBC and related 19 individuals and institutions to recover at least $ 81 million out of the total $ 101 million stolen by hackers in 2016.

In a written statement, the BB officials said the NY court on April 8 asked Kim Wong, another accused, to reply to the complainant (Bangladesh Bank).

Cozen O’ Connor, a legal service provider to the BB, expects that the NY court will give a positive verdict in favour of the Bangladesh Bank.

Before the move, several dailies in the Philippines published a report that the Supreme Court of New York dismissed the Bangladesh Bank’s 2020 Civil Complaint about the cyber heist of $ 81 million reserves “for lack of jurisdiction”.

On February 5, 2016, hackers stole $ 101 million from the Bangladesh Bank’s account with the Federal Reserve Bank of New York using fake orders through the SWIFT payment system.

Of the amount, $ 81 million was transferred to four accounts with RCBC in Manila of the Philippines while another $ 20 million to a bank in Sri Lanka.

The $ 81 million flowed through the Philippine financial system before disappearing in local casinos where they were used to buy gaming chips that were played in junket rooms.

However, the transfer of $ 20 million to Sri Lanka failed due to a spelling error made by the hackers.

Later, the BB was able to retrieve about $ 15 million from the Philippines.

In the New York lawsuit, the Bangladesh Bank accused at least 20 defendants of “conversion/theft/ misappropriation; aiding and abetting the same; conspiracy to commit the same; fraud (against RCBC); aiding and abetting and conspiracy to commit fraud; conspiracy to commit trespass against chattels; unjust enrichment; and return of money received”.