Canadian Western Bank (CWB) obtained an ex parte preservation order to freeze funds after an alleged fraudulent transfer of $14.2 million CAD. The funds were transferred into accounts associated with Aquanow, a digital asset liquidity provider.
Issue:
The court needed to decide whether to set aside the ex parte order due to non-disclosure by CWB, and if so, whether to issue a new preservation order and assess damages and special costs.
Court's Ruling:
The court set aside the ex parte order due to CWB’s failure to make full and frank disclosure of all material facts during the application. The court declined to issue a new preservation order and ordered an inquiry into damages suffered by Aquanow due to the order.
Costs/Damages Awarded:
Special costs were awarded against CWB, payable to Aquanow, with the amount to be assessed. An inquiry into the damages suffered by Aquanow was ordered to determine the financial compensation due.
