Mercado Bitcoin Wins Court Case Against Santander Bank Brazil

Wilfred Michael 

Wilfred Michael

News reporter

11 March 2019,
16:52
Mercado Bitcoin Wins Court Case Against Santander Bank Brazil

Brazilian based crypto exchange, Mercado Bitcoin has won a court case against local bank Santander according to a report by CriptomoedasFacil.

A judge in the Sao Paulo Court of Justice dismissed an appeal filed by Santander Bank to revoke an earlier court decision to return funds in a Mercado Bitcoin bank account that it froze last year.

Santander Bank reportedly froze Mercado’s account (up to R$1,350,733.00 or app $350,000) on the grounds that they were carrying out an activity that is not compatible with the bank’s policy. The exchange subsequently appealed the unjust action and won the initial court case which asked the Bank to return the funds.

However, the bank failed to do so and instead filed the just rescinded appeal.

The latest court decision states that Santander freezing of Mercado’s funds is an "abuse of law since it is not liable to seize resources deposited in the current account of its account holders, due to fraudulent transactions carried out by third parties."

It, therefore, mandates Santander Bank to:

  • Payback the sum of R$1,350,733.00 or app $350,000 to Mercado Bitcoin.

  • Pay a 1% interest on the amount for the period it held the funds

  • Pay the legal fees Mercado spent on pursuing the lawsuit at 10% the value of the conviction.

The report also notes that Santander had appealed the current order only to see it dismissed once again. Therefore, it is most likely that the Bank will return the confiscated funds to the crypto exchange soon.

Mercado’s purported victory continues the hot rivalry between banks and cryptocurrencies or even businesses operating in the industry. In early January, we reported that Indian Banks had included a no crypto clause to their terms and conditions, thus discouraging clients from having anything to do with cryptocurrencies.

 

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