Brazilian Bitcoin Exchange wins in court verdict against Banks

In Brazil, two banks had to reopen its accounts to avoid paying fines. They took this action because of the preliminary decisions made by Brazil’s Federal District Court.

The two banks were Santander, and Banco do Brasil, which eventually restored the accounts. Not complying the court’s decision would have cost Santander up to $1,350 and Banco do Brasil up to $5,400.

The decision came as the judge Ana Catarino reviewed the banks’ lack of communication about closing the exchange account to be “abusive conduct,” prohibited by the country’s consumer protection laws.

The bank apparently reopened Bitcoin Max’s account. Bitcoin Max’s attorney, Leonardo Ranna declared that his bank accounts along with his partner’s account “have been restored,”

Additionally, Banco do Brasil even kept $32,300 of the exchange’s funds in the void. Eventually, the financial institution was given a 24-hour period to reopen Bitcoin Max’s accounts or face a fine of about $540 per day.

On that, Adriano Zanella, the CEO of the exchange revealed that the banks didn’t even inform they were going to shut down its accounts.

The CEO stated, “in both situations, there was no formal communication from the banks on the closure of accounts.”

He further added that he knew about the accounts via the manager of his agency at which point he would ‘carry out an electronic transfer through the bank.’

Although, this is not the first time when the judicial system took side with the exchange, as Brazilian exchange Waltime was also favoured by the court, In August. A bank, Caixa Econômica Federal had frozen its accounts with over $200,000 in them.