Brazilian court orders two cryptobags to block user funds

A court in the city of Sao Paulo in Brazil instructed two cryptocurrency exchange houses to block the balances of a user, who is a party to a civil suit in that city. The judicial decision, issued on April 25, was made public this Monday, May 6 through an official statement, as reported by several local information portals.

Although in Brazil there is still no legal framework for cryptocurrencies, courts are able to order the blocking of funds in cryptocurrencies to enforce judgments. In this case, Judge Tamara Hochgreb Matos, of the Civil Court of Sao Paulo, intimated the crypto-bags Mercado Bitcoin and Foxbit, which must freeze up to 267,050.23 Brazilian reais, equivalent to more than USD 67 thousand.

The decision is related to a ruling against the company Moto Place Comercio and Servicios de Vehículos Automotores Ltda. The company was convicted in a civil action for breach of contract, for which it was ordered to pay 160,373.13 reais to the plaintiff Dafra Motos. However, Moto Place did not comply with this ruling, so the court proceeded to ensure payment with the blocking measure of their assets, including balances in cryptocurrencies.

According to the reports, the sentence does not use the term “cryptocurrencies” at any time. Instead, the judge speaks of “electronic currencies”, to refer to the funds deposited in the cryptocurrency exchange houses.

Mercado Bitcoin told a local media that it has not yet been officially notified of the measure, although he mentioned that there are precedents regarding this type of judicial notice. In this sense, they showed full willingness to abide by the decision of the judicial bodies.

The judicial action reminded some of the controversial case of bitcoiner Daniel Fraga, who in 2017 was ordered by a judge in Sao Paulo to pay a fine in compensation for moral damages. The sentence could never be fulfilled because Fraga kept all his assets in purses of bitcoins, which were not located by the authorities.

Source: Criptonoticias

Disclaimer: This press release is for informational purposes information does not constitute investment advice or an offer to invest. The views expressed in this article are those of the author and do not necessarily represent the views of infocoin, and should not be attributed to, Infocoin.

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