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Sao Paulo Court Blocked Funds in Accounts of Crypto Exchange Amid Lawsuit

By Shannon Wilson | June 8, 2019
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Sao Paulo Court Blocked Funds in Accounts of Crypto Exchange Amid Lawsuit

The authority of Sao Paulo, Brazil has reportedly frozen all money in the bank accounts of crypto exchange Grupo Bitcoin Banco – a total of 726,630 reals (equivalent to $188,000 at press time).

Reported by Cointelegraph Brazil on June 5th, 2 individuals, together with 1 establishment, have sued Grupo Bitcoin Banco (GBB) for conducting abusive procedures, as the customers failed to withdraw their money, or convert it back into reals, due to all transactions were temporarily suspended.

The team of three claimed to have 726,630 reals on GBB store in there GBB bank accounts and urgently asked the Court of Justice of the State of Sao Paulo to give immediate protection for their funds.

The judge has finally ruled in favor of the trio – agreeing that a “danger of harm” can be seen, as the possibility of losing the plaintiffs’ money is high. GBB has the right to appeal to the final ruling result.

GBB has recently been involved in a scam on its system, as the balance of a number of its clients increased 2-fold, and these customers later withdrew non-existing money. The security breach has reportedly caused around 50 million reals ($13 million.) worth of financial damage.

On Monday this week, GBB – which is the owner of NegocieCoins and TemBTC crypto exchanges – revealed that it was able to determine 19,896 fraudulent transactions, and has frozen 2,568 fishy accounts.

GBB claimed that it will put extra efforts in finalizing customers’ withdrawing request, but some customers have grown impatient due to the long delay periods.

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