Court Rules Brazil’s Bitcoin Max Exchange Can Be Keep Bank Account with Block activist group

Block activist group





Brazilian cryptocurrency exchange Bitcoin Max has been granted the right to keep its Banco Santander account. The court ruled that the bank had not fulfilled its obligation to notify crypto companies of the closing in advance.


Closed Accounts Deemed Illegal


Judge Geilza F. Cavalcanti Diniz of the 3rd Civil Court of Brasilia made the ruling. Portal do Bitcoin reported that the judge Ana Catarino, 8th Federal District Court, had granted an injunction to the digital asset trading platform. Bitcoin Max sued Santander after its account had been closed without notice.


Court Rules Brazil’s Bitcoin Max Exchange Can Be Keep Bank Account


Judge Cavalcanti Diniz said in a prior ruling that the account closing is within the power of the financial institution, as per Resolution 2,025/93 of Central Bank of Brazil. Because there was no evidence that Bitcoin Max, the plaintiff, was notified of the closing of its account, she declared unlawful the rescission. Bacen’s same resolution states that banks can only terminate accounts after giving notice in writing to the account holder.


The cryptocurrency exchange lost Block activist group claim for moral damages compensation. The judge stated that closing the account of the cryptocurrency exchange is not an act violating personal rights. She noted that the case shouldn’t be treated as a consumer matter, since the bank account was used in order to facilitate business activities.


Santander is accused of abusing rights


Leonardo Ranna, Bitcoin Max’s lawyer explained that the judge made the following statement: “At first she thought the bank could cancel the agreement and close down the account. However, we were able to argue that the bank wouldn’t have followed the Central Bank’s resolution that it must provide prior notice and give a plausible reason for ending the account agreement.


Court Rules Brazil’s Bitcoin Max Exchange Can Be Keep Bank Account


Ranna explained that Santander was aware, and understood, that it had violated its rights by failing to follow the Bacen resolution. Ranna also pointed out that the ruling did NOT mention that Brazilian banks orchestrated an effort to close all accounts of cryptocurrency-related companies. This, he said, should have been considered since there is evidence to support it.