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Banco Santander to return $335,000 to crypto exchange Mercado Bitcoin

A court in Sau Paulo, a Brazlian state has recently given a ruling to return $335,000 to a local crypto exchange. The decision came after the court froze the exchange’s account. Citing the reason that the activities of exchange were not lines with bank policies. 

The news came through local news outlet, Criptomoedas Fácil. Further, adjudicator Daniela Menegatti Milano had previously dismissed appeals by Banco Santander, on a case raised by crypto exchange Mercado Bitcoin. 

As per the report, the exchange’s fund were frozen without a proper explanation. Subsequently, Mercado Bitcoin took legal action.

Banco Santander’s Unusual Act

The exchange has put forth a claim that the funds frozen, either be returned or transferred to another account, till the completion of the process. More importantly, the exchange has got support from the court. The ruling mentions,

"In light of what's exposed, I find justifiable the formulated requests, condemning the defendant to refund RS $1.350.733, fixed by the practical table of the court, plus interest of 1% per month.... The defendant will support legal expenses set at 10% of the condemned value."

The bank probed in the matter and in the second hearing, Banco Santander saw it abuse of power. More so, it is not liable to seize resources deposited, due to suspicious transactions carried out by third parties. 

Per the report, Mercado Bitcoin allegedly revealed fraudulent transactions were indeed carried out by third parties via the platform. Consequently, Santander launched an internal investigation in the matter. 

The bank’s investigation reportedly concurred using “ Google Street View to gauge the financial conditions of those involved.”

Interestingly, despite knowing the mastermind behind the transactions, Santander took a decision to block Mercado Bitcoins account, rather than catching the individuals involved. 

The court also observed that lack of regulations doesn’t imply that cryptocurrency exchanges’ activities are illegal. However, it also noted that  crypto exchanges presently do not have enough measures in place to monitor their platforms, to ensure their users don’t break the law.

Growing Crypto Economy in Brazil

Brazil is one the nations to drive crypto adoption. In 2018, it launched National Blockchain Association, and this year the Ministry of Justice revealed studying Bitcoin, and its usage in crime scenarios.

Also, in December 2018, Brazilian premier league soccer club Atletico Mineiro launched a fan token dubbed “GaloCoin,” named after Atletico’s mascot. The coin is based on Footcoin, a platform which allows launch of utility tokens on the Ethereum blockchain.