Monday, March 4

Justice tries to block BRL 160,000 from Brazilian brokerage, but only finds BRL 2,000

In a case involving a customer dispute with a Brazilian cryptocurrency brokerage, the court asked for a block of BRL 160,000, but only found BRL 2,000. The process involves a customer of BitcoinToYou, a cryptocurrency exchange accused in court of blocking 200 Litecoins purchased by the customer.

As the client bought the cryptocurrencies for a value well below the market, the broker maintains that he took advantage of a system glitch. The case has been under evaluation since 2018 and has not yet been resolved.

Broker appealed not to transfer Litecoins to client

It all started when a customer purchased Litecoin cryptocurrency on the exchange at 78% off. With the coins in his balance, he then proceeded to withdraw the request to his personal wallet, when the problems began.

From then on, he was unable to withdraw the amounts and days after his purchase, had your account blocked. He sought support to understand the reason for the block and received a response that “soon” his account would be refunded.

Days after the incident, he received information that operations made between November 6 and 11, 2018 were canceled because there was a “bug” in BitcoinToYou. This was not the first case of problems with the broker, with several reports in court about similar cases.

In the first instance, the judge who handled the case granted the exchange to transfer 200 Litecoins (LTC) to a wallet held by the client. The decision was given in a request for urgency and was to be carried out in five days.

However, the exchange appealed the decision and said that if it sent the LTCs to the client, it would be taking a risk, as blockchain transactions cannot be undone. Thus, the judge then determined that the amount of BRL 160,000 be blocked from the exchange’s accounts.

Broker has less than R$ 2 thousand in bank accounts

When proceeding with the blocking of values ​​in the accounts of the BitcoinToYou brokerage at the beginning of 2022, the Sisbajud system sought values ​​at Banco do Brasil, XP Investimentos, Itaú, Bradesco and other institutions of the traditional Brazilian financial system.

Searching for R$ 160 thousand, only R$ 1,765.00 were found in BitcoinToYou accounts, according to the document that the Livecoins obtained access, in process 5058061-53.2020.8.13.0024.

Now, the case will be evaluated again and justice will seek to find company values ​​to block in this curious case.