BB heist: NY court allows case to proceed
Despite the dismissal, the court will still hear the case regarding the return of the misappropriated funds, leaving the door open for Bangladesh Bank's ongoing efforts to recover the stolen money
Rizal Commercial Banking Corp (RCBC) in the Philippines is studying its next moves after the New York Supreme Court allowed the case, filed by the Bangladesh Bank over the $81 million cyber heist in 2016, to proceed.
In a stock exchange filing on Friday, the Yuchengco-led bank said it received a decision in this connection from the US High Court on 29 February this year, reports business.inquirer.net.
In the 29 February decision, the Appellate Division, the 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.
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Also, it dismissed the case against four RCBC defendants (Ismael Reyes, Brigitte Capiña, Romualdo Agarrado, and Nestor Pineda) for lack of personal jurisdiction.
Aiding and abetting
RCBC also said the court, however, ruled that the case can proceed against the bank and the remaining defendants in relation to other causes of action, including the return of money received.
The original complaint in the state court, filed on 27 May 2020, was for "conversion, theft, and 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."
Without ruling on the merits of the case, the court confirmed its jurisdiction over RCBC and the individual defendants in a decision on 14 January 2023.
$81 million in stolen funds
The Bangladesh Bank had earlier filed cases to recover $81 million in stolen funds, which were allegedly lost to North Korean hackers.
Some of the funds were allowed to be transacted via correspondent banks in New York before being wired to fictitious accounts with RCBC. RCBC had vowed to "defend the case vigorously" even after the New York court had dismissed its motion to dismiss.
