In a case involving a customer dispute with a Brazilian cryptocurrency brokerage firm, the court requested R$160,000, but only R$2,000 was found. The lawsuit involved a client of BitcoinToYou, a cryptocurrency exchange that was accused in court of blocking 200 Litecoin obtained by the client.

As the customer bought the cryptocurrency at a price far below the market, the exchange insists that he took advantage of a glitch in the system. The case has been under evaluation since 2018 and has not yet been resolved.

Brokers urge against transferring Litecoin to clients

It all started when the customer bought Litecoin cryptocurrency at a discount of 78% on the exchange. When the problem began, he had coins in his balance and then withdrew the request to his personal wallet.

Since then, he has been unable to withdraw these funds and within days of the purchase, his account was frozen. He sought support to understand the reason for the block and received a reply saying that his account would be refunded "soon".

A few days after the incident, he received information that the operations carried out between November 6 and 11, 2018 were cancelled due to an "error" in BitcoinToYou. This is not the first problem for brokers, and there are several reports of similar cases in court.

In the first instance, the judge handling the case allowed the exchange to transfer 200 Litecoin (LTC) to a wallet held by the customer. The decision was made in an urgent request and will be implemented within five days.

However, the exchange appealed the decision and said that it would take the risk if it sent the LTC to its customers, since blockchain transactions cannot be revoked. As a result, the judge then decided to freeze the amount of 160,000 Brazilian reais from the exchange's account.

Broker's bank account is less than R$2,000

As it continues to freeze the value in BitcoinToYou brokerage accounts in early 2022, the Sisbajud system seeks value in Banco do Brasil, XP Investimentos, Itaú, Bradesco and other institutions of the traditional Brazilian financial system.

According to the file that Livecoins obtained access to in process 5058061-53.2020.8.13.0024, a search for 160,000 Brazilian reais found only 1,765.00 Brazilian reais in the BitcoinToYou account.

Now the case will be evaluated again and Justice will seek to find corporate values to stop this strange case.