Brazilian bank tries to recover money after making an undue payment to a woman's account and has even asked for cryptocurrencies to be blocked.
Justice giving decision on case involving bitcoin and cryptocurrencies in Brazil. AI image.
In a new decision in the Brazilian courts, Santander requested the blocking of cryptocurrencies in brokerages and banks, as well as in fintechs.
The request was made in a lawsuit over undue payment by the bank to the woman. The case is worth R$8,862.81 and is currently pending in the São Paulo courts.
With access to a copy of the decision, the report found that the court granted the benefit to the bank, which is now targeting cryptocurrencies held in custody even in other traditional banks.
Santander requests and court authorizes blocking of cryptocurrencies in brokerages, fintechs and banks in the name of the debtor
In Brazilian justice processes, it has become common to issue official notices to block cryptocurrencies in centralized brokerages.
However, the new decision indicates an expansion of the scope of the searches, which now target cryptocurrencies held in banks and other financial institutions. In recent years, several Brazilian banks have started to sell bitcoin, such as Nubank, BTG Pactual, Mercado Pago, among others.
Furthermore, the new decision indicates that even staking applications must undergo blocking, as well as amounts in Real deposited in brokerage firms.
“Cryptoasset Custodians – Any Cryptoasset, including in passive income applications such as staking or other financial products, as well as amounts in fiduciary currency, held by any entity, even if held by Centralized Cryptoasset Brokers, by similar platforms/entities, as well as by Financial Institutions, if belonging to the executed party.”
In Judge Carlo Mazza Britto Melf's decision, he makes a single reservation, stating that there is no point in looking for values on platforms that do not perform cryptocurrency custody. Thus, he called the measure innocuous, asking for focus on centralized brokerages, banks and other financial institutions.
“Since this is a futile measure, any requests regarding platforms/entities that do not directly hold custody or, if indirect, do not hold management power over the category of assets belonging to the defendant party, as is the case with Decentralized Cryptocurrency Brokers, will not be granted,” concludes the decision involving cryptocurrencies. In addition to cryptocurrencies, the judicial system seeks several other assets in the name of the debtor.
TJSP decision confirms Santander Brasil's request to block a debtor's cryptocurrencies in brokerages and banks. Excerpt obtained by the court decision reporter/Reproduction.
New system that blocks cryptocurrencies directly in Brazilian institutions is under construction
As reported by Livecoins, in August 2024 a court event confirmed the creation of the so-called CriptoJud. The system will work in a similar way to Sisbajud, but with a focus on blocking cryptocurrencies directly in the accounts of Brazilians who hold custody in brokerages or banks.
It is worth remembering that in cases like these, companies that hold cryptocurrencies must sell the assets for Brazilian Real, and then deposit the amounts in the court accounts.
Finally, a recent decision by the STJ also ruled that bitcoin is a seizable asset in the event of debts, which reinforces the role of the courts in similar cases.