Dhaka – Bangladesh Bank has decided to terminate its legal assistance agreement with US law firm Cozen O’Connor, which has been representing the central bank in an ongoing lawsuit in the United States over the 2016 reserve heist.
The termination of the agreement, however, will not affect the ongoing legal proceedings. Bangladesh Bank will continue receiving legal support from Bangladeshi law firm Bangladesh Supreme Court & Legal Consultants (BSNK) and UK-based law firm Keystone Law.
The decision was approved at a meeting of the Bangladesh Bank Board of Directors on Sunday. Governor Mostaqur Rahman chaired the meeting.
The board also gave final approval for the payment of outstanding bills owed to Cozen O’Connor for legal services previously provided in connection with the reserve theft case. At the same meeting, it decided to terminate the existing legal assistance agreement with the firm.
Reserve Heist in 2016
In February 2016, hackers stole around $101 million from Bangladesh Bank’s account at the Federal Reserve Bank of New York. Around $81 million was transferred to several bank accounts in the Philippines, while another $20 million was sent to Sri Lanka.
The transfer to Sri Lanka was blocked after a spelling error in the recipient’s name raised suspicion and prevented the transaction from being completed.
Bangladesh later managed to recover part of the stolen funds through various initiatives, although a significant portion of the money remains unrecovered.
Bangladesh Bank subsequently filed a lawsuit in a US court seeking to recover the stolen funds, with Cozen O’Connor providing legal assistance to the central bank.
According to relevant documents and Bangladesh Bank officials, terminating the agreement with Cozen O’Connor will not bring the US lawsuit to an end. BSNK and Keystone Law will continue to assist Bangladesh Bank in pursuing the case.
Need for Cozen O’Connor’s Services Has Declined
A senior official of the Bangladesh Financial Intelligence Unit (BFIU) said Cozen O’Connor had been providing additional legal support to Bangladesh Bank in the reserve theft case.
“As the need for their assistance has declined, the agreement has been terminated,” the official said, adding that the legal proceedings would continue through the other law firms.
The official said there is clear evidence of the misappropriation of Bangladesh’s funds in the reserve heist and expressed confidence that Bangladesh Bank has a strong chance of securing a favorable judgment.
He also said one of the opposing parties had previously attempted to negotiate a settlement by offering to resolve the case for half of the stolen amount. Bangladesh Bank, however, rejected the proposal.
The central bank has maintained its demand for the recovery of the full amount stolen, along with interest.
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