Brazilian Court Forces Santander to Return $350,000 to Mercado Bitcoin
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Main page News, Brazil, Cryptocurrency Exchanges

The Court of Justice of the Brazilian state of São Paulo has dismissed the appeal filed by Santander Bank against the local crypto exchange Mercado Bitcoin. It has ruled that the bank must return the funds to the company, the local publication CriptomoedasFacil reported on March 8.

The bank, alleging that its activity was incompatible with its policy, had closed the exchange's account and frozen its funds.

Shortly afterwards, the exchange platform filed a lawsuit in court against the closure of its account, alleging that the bank's decision to freeze its funds was not justified and that, for that reason, they should be returned to the platform or deposited in a judicial account until the process was closed.

Now, the court, after examining the allegations presented by Mercado Bitcoin, has decided to force the bank to unfreeze the exchange's funds.

Why it is important

  • Santander Bank is participating quite actively in the implementation of the blockchain technology in the banking sector. For example, in April 2018 it launched a blockchain-based payment app, and in May 2018 it successfully completed a blockchain investor voting pilot. However, the bank decided to close the exchange's account despite its blockchain background.

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