The Bank of Santander is order to return more than $ 335,000 to the local stock exchange cryptocurrency by a court in the Brazilian state of São Paulo. The order was issued after the bank froze the account of the local cryptocurrency exchange Mercado Bitcoin stating that its activities are incompatible with bank policies. The appeal filed by the bank was rejected by Judge Daniel Menegatti Milano as a result of which the bank blocked its account with 1.3 million reais.
The bank froze the Mercado Bitcoin account without providing a proper explanation and later the organization’s representatives said that its activities did not comply with the bank’s policy. It was further alleged that the funds were improperly frozen and must either be returned or deposited to another account until the process is complete. The court ruled in favor of Mercado Bitcoin.
The bank questioned this decision and at the second hearing it was decided that the bank’s actions showed that the organization had abused its authority “because it is not obliged to confiscate the resources placed on its clients’ accounts due to fraudulent transactions by third parties “.
According to the Mercado Bitcoin reports, this fraudulent transactions were carried out by third parties through a bank on its platform after which Santander conducted an internal investigation into this matter.
The bank’s investigation even included the use of Google Street View to determine the financial conditions of those involved. Despite the fact that it knew who was behind the fraudulent transactions the bank decided to block the Mercado Bitcoins account instead of searching for the people themselves.
The court also stated that the lack of regulations does not mean that the activities of the exchange is illegal. However it noted that crypto exchangers currently cannot properly control their platforms to ensure that their users do not violate the law.