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A Brazil-based cryptocurrency exchange has won its case with the local bank regarding the closing of their banking account.

The exchange called M Intermediação e Prestação de Serviço, legally confronted Banco Bradesco, a local retail bank after it suspended its account because it registered suspicious activity that might have been linked to fraud.

The bank account was used by the exchange for it to accept fiat deposits and withdrawals. But in 2018, the bank has the account suspended, declaring that its security system had detected unusual activity. The bank told the court that the account freezing was meant to be a security measure.

The judge ruled that the court hadn’t found any substantial evidence that backed up the bank’s decision. The bank was then ordered to give back the exchange access to the account immediately.

“There is no documentary evidence in the file as to the unusual movements that gave rise to the blockade, whose undoing only occurred after the granting of emergency relief,” ruled the judge.

Another South American crypto exchange won its legal battle against a bank that had closed its account. According to local reports, the Walltime crypto exchange won its preliminary case against Caixa Econômica Federal which froze said account.

In the Walltime account, there were deposited 800,000 reals ($212,000) around the time it was closed, stated Walltime’s lawyer, Graziela Brandão. The lawyer then said: “Given that the nature of Walltime’s activity requires an open bank account in as many institutions as possible to facilitate 24/7 negotiations, Walltime suffered a lot of damage in that period.”

She then said that the losses that were due to the account suspension were approximated to over $250,000. A few clients were not able to process their fiat deposit and withdrawal transactions, which created a massive decline in trading volume. She believes the exchange will also file an indemnity action against the bank for the losses sustained.

Featured Image: CCN Markets

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