NN Report: The New York Supreme Court has dismissed several charges against the Philipine-based Rizal Commercial Banking Corp (RCBC) related to the $81-million cyber heist from Bangladesh Bank in 2016 while allowing the case to continue on other grounds.
The appellate division 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, reports the Philippines Daily Inquirer.
The court also dismissed the case against four RCBC defendants (Ismael Reyes, Brigitte Capiña, Romualdo Agarrado and Nestor Pineda) for lack of personal jurisdiction.
The legal battle, however, is not over.
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.
In a stock exchange filing on Friday, RCBC said it received a decision from the US high court on 29 February this year and now the company is reportedly studying its next moves, according to Inquirer.
“The bank is considering whether or not to appeal this decision and order,” RCBC said.
The original complaint in the state court, filed on 27 May 2020, was for the “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.”
Without ruling on the case’s merits, the court confirmed its jurisdiction over RCBC and the individual defendants in a decision on 14 January 2023.
$81 million in stolen funds
Bangladesh Bank had filed earlier cases to recover $81 million in stolen funds, which was allegedly lost to North Korean hackers.
On 4 February 2016, hackers broke into the Bangladesh Bank’s account at the Federal Reserve Bank of New York and stole over $81 million using 35 fake SWIFT, a global communication network for banks and financial institutions, messages.
The money was wired to an RCBC branch in Manila, the capital of the Philippines, from where it disappeared into the casino industry in the Philippines.
Hackers also made an effort to transfer $20 million to a fake NGO in Sri Lanka but failed due to a wrong spelling used in the message.
Bangladesh was able to recover only $15 million from the Philippines with the help of the US intelligence agency FBI. The refund process of the rest of the money is stuck in lawsuits.