RCBC mulls over appeal of NY decision on Bangladesh cyberheist

MANILA, Philippines  — Yuchengco-led Rizal Commercial Banking Corp. (RCBC) is studying its next moves after the New York Supreme Court allowed the case filed by Bank of Bangladesh, concerning the $81-million cyberheist in 2016, to proceed.

In a stock exchange filing on Friday, RCBC said it received a decision from the US high court on Feb. 29 this year.

In the Feb. 29 decision, the appellate division, 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.

READ: Bangladesh Bank, RCBC battle on $81-M cyberheist

It also 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 said the court, however, ruled that the case can proceed against RCBC and the remaining defendants on the other causes of action, including the return of money received.

“The bank is considering whether or not to appeal this decision and order,” RCBC said.

The original complaint in the state court, filed on May 27, 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.”

READ: What went before: $81-million Bangladesh bank cyberheist

Without ruling on the merits of the case, the court confirmed its jurisdiction over RCBC and the individual defendants in a decision on Jan. 14, 2023.

$81M in stolen funds

Bangladesh Bank had filed earlier cases to recover $81 million in stolen funds, which was 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. INQ