Digital currency exchange Bitfinex filed suit against banking giant Wells Fargo late last week, after the bank moved to limit its ability to send funds worldwide.
Stephen D Palley, a Washington, DC-based lawyer, suggested that Wells Fargo may challenge the jurisdictional nature of the suit, given that the plaintiffs are based outside of the US.
Should it get past that potential problem, other pitfalls could trip up the effort as well, according to Palley.
"Even if Bitfinex gets past a jurisdictional motion, it has no privity of contract with Wells Fargo. As a consequence, it pleaded a cause of action for 'Intentional Interference with Contractual Relations.' I know nothing about the underlying facts, but strictly as a legal proposition, this is a hard theory to prove," he told CoinDesk.
Palley concluded:
"I can’t imagine that [Wells Fargo] really wants to intentionally interrupt Bitfinex’s business. It seems more likely that compliance red flags were raised."
To read the full article:
Bitfinex Sues Wells Fargo Over Bank Transfer Freeze