South American Cryptocurrency Exchange Wins Lawsuit Against Brazilian Bank, Banco Bradesco

In yet another court case involving a South American cryptocurrency firm, M Intermediação e Prestação de Serviço Ltda. – a cryptocurrency brokerage firm – won a lawsuit against, Banco Bradesco. The lawsuit was filed against the bank after it closed the crypto broker account leading to losses in revenue.

In an official statement on Official Gazette of the State of São Paulo on August 1st, the brokerage firm claims that the bank stopped its operations improperly and illegally in 2018. This becomes the latest of cases against banks in the South American continent following a similar lawsuit by Mercado exchange in Brazil against Santander Bank.

M Intermediação operates in the field of cryptocurrency in Brazil allowing users to buy and sell cryptocurrencies through the brokerage firm. The firm operates transactions on the Bitcoin blockchain as well as fiat currencies through bank accounts. Users can deposit and withdraw on the platform using the local Brazilian reals or BTC seamlessly.

In its defense however, the Banco Bradesco lawyers said their client found sufficient security issues with the transactions being made to the brokerage firm leading to closure of the account.

The report from the bank states that its security system “detected unusual movements, blocking access to the account through external media, in order to prevent fraud” The judge however did not find efficient evidence for the bank to close the account stating,

“There is no documentary evidence regarding the unusual movements that gave rise to the blockade.”

Cryptocurrency Exchanges Entangled in Lawsuits in South America

Earlier in the month, three cryptocurrency exchanges, including Mercado exchange, were tied down to the serial Petrobras anti-corruption case as a suspect transacted Bitcoins through the exchanges.

There have been a number of cases relating to the cryptocurrency field in the past few months. Three Chilean exchanges have also filed a lawsuit following their accounts being frozen on suspicion of malicious activities in 2018.

The banks Itau Corpbanca and Scotiabank, in particular, had locked the accounts for the exchanges BUDA and CryptoMKT, while the public bank Banco del Estado de Chile had frozen Orionx’s account alongside BUDA’s and CryptoMKT’s.

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