Sao Paulo court rules against Binance in user withdrawal case
Local courts in Brazil have given their verdict in a case related to cryptocurrency exchange and have started preparing to deal with it. Binance, one of the crypto exchanges providing its services collectively, saw a case in September due to the inefficiency of processing withdrawals for a client in Sao Paolo.
According to the report that has just been published, the complaining customer has alleged that he was unable to process withdrawals of about $14,500 on the exchange during the period in which the crypto exchange had direct transactions in the country. Deposits and withdrawals were restricted and suspended. The affected client makes his plea to the court by stating that the money will be used to pay for health services. Sure enough, the court ruled in favor of the client and pleaded in favor of the same and passed an order for the exchange to re-execute the pending withdrawals while awarding moral damages of about $2000. Award was given. Judge Rafael Almeida Moreira de Souza, who was in charge of the case, who was overseeing the entire process and getting to the bottom of the matter, said that the existence and dignity of the applicant are essential to all values And it is also necessary that necessary steps are taken to recover the moral damages and to provide compensation to the victim and action is taken to punish the offender for the same so that such conduct or behavior does not happen again and so on. With this process can never be repeated in future.
Simultaneously, a local newspaper, Metropolis, reports about another such case, which was resolved in December 2021 and then a judge ruled out its alleged links with the hacking attack. Due to this, a customer was allowed to withdraw the blocked funds and placed the order for the same. The case is apparently a result of the measures the crypto exchange had to receive in June when Capital, the exchange’s payment provider in Brazil, stopped processing Binance orders.
The company updated its platform to meet the requirements imposed by the Central Bank of Brazil to allow third parties to conduct transactions on its PIX payment network.
The situation had prompted the crypto exchange to announce that it would take legal action against Capital for service suspension and Capital, which at the time also served other exchanges in the country and linked them to its platform, cited It was believed that the crypto exchange that did not receive our services simply failed to adapt its technical platform and all this is the result of its technical eclipse. Sure enough, the suspension, which lasted more than a week, ended with the addition of a new temporary payment partner. While Binance was exploring possibilities to acquire Simpol Investimentos, a regulated brokerage company in Brazil. Certainly we can say that the decision taken by the court in the interest of the client shows the effectiveness as well as shows how strict the court’s stand towards the rules. Surely, with this decision, crypto exchanges will have to work to improve their services and make them more affordable and easily accessible to users.
