Brazilian Court Reopen Cryptocurrency Exchange’s Frozen Accounts

A court in Brazil has ordered two Brazilian banks to reopen all frozen Bitcoin Max’s bank accounts.

Written by: Mwere Jmaina

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Mwere Jmaina

Mwere Jmaina is a guest author at coinpedia. He explores and writes about crypto coins, the latest updates, and more.

    Nov 2, 2018


    These cryptocurrency accounts were frozen without any genuine explanation by Banco Santander and Banco Do Brasil in September. The banks have allegedly reopened the accounts to ensure they avoid penalties.

    Threat of Fine

    According to the Brazilian news website, Portal Do Bitcoin, the Federal District Court threatened to slap the banks with a fine. Banco Do Brasil would face a fine of $5,400 while Santander would face a fine of $1,350. Leonardo Ranna, the attorney representing Bitcoin Max, stated that all the accounts “are now open, including those of business partners.”

    Last month, the CADE (Administrative Council for Economic Defense begun to investigate six of the leading banks in Brazil. The investigation started when they all closed accounts owned by digital currency exchanges without any explanation and did not support their action.

    The investigation centered on claims of “monopolistic practices” that limits the actions of dealers within the cryptocurrency world. However, the results of the probe are not known.

    A Temporary Ruling

    The ruling against the Santander bank might only be temporary. Portal Do Bitcoin said that the bank only obeyed on the ground of a “form of the injunction” that made it reactivate Bitcoin Max’s accounts. The judge throws out an injunction on a lower court, driving the exchange’s attorneys to appeal to a Brazilian Federal District Court.

    The latest order by Judge Catarino Ana originates from Santander’s one-sided decision to shut the accounts without any reason. The court said that was “abusive conduct that is illegal” since it violates consumer protection laws.

    Money in the Account

    Moreover, the Bitcoin Max’s accounts had about $32,400 of the trader’s money. The exchange filed a case against the bank on 12th September 2018. An injunction was first denied but after an appeal, a Federal Court Judge gave the banks a 24 hours ultimatum to reopen the accounts or face a penalty of $540 per day.

    The CEO of Bitcoin Max, Adriano Zanella, said that they did not know about the account closures. They learned it from the manager of an organization. During the probe, the CADE says, the banks were “imposing restrictions and even prohibiting access to the banking system by cryptocurrency dealers.

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    Mwere Jmaina

    Mwere Jmaina is a guest author at coinpedia. He explores and writes about crypto coins, the latest updates, and more.

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