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Brazilian Crypto Exchange Foxbit Forced to Pay Customer in ‘Lost’ Ethereum Claim

Source: Adobe/BillionPhotos.com


A court in Brazil has ordered the domestic crypto exchange Foxbit and another crypto-related firm to “reimburse” customer who “lost” almost USD 3,000 worth of ethereum (ETH) in a transfer in February 2020.

The investor claims to have transferred the ETH holdings from a wallet on a large international trading platform to a Foxbit account, Globo reported – but an error appears to have occurred, with the customer deciding not to use the recommended network for the transfer.

Foxbit claims that the customer “chose to make” their “cryptocurrency transfer without the use of commonly used security technology,” which it claimed, led to “the loss of the funds.”

The company stated:

“In this case, the consumer chose to make a transfer of cryptoassets from an international exchange to Foxbit without using the main – and most commonly used – blockchain network, commonly used, which caused this loss of funds. Foxbit will appeal the decision.”

Foxbit and another firm named B Fintech Serviços de Tecnologia – possibly the domestic partner of the exchange the customer was attempting to transfer their coins from – were fined around USD 3,000 by a civil court in the Rio Grande do Sul province. However, both parties will be allowed to appeal the verdict if they choose, and the judge turned down the customer’s claim for “moral damages.”

B Fintech’s legal team was quoted as stating that there was “a possibility of an appeal,” but that the company would not comment any further on the case.

The customer was quoted as stating about the failed transfer:

“It caused me worry and anguish. If you transfer money from one bank to another and the money doesn’t arrive, the bank is held responsible.”

The presiding judge was quoted as stating that the plaintiff had “proved” the fact that they had made an “investment with the defendants,” and had also proved the “absence of the receipt” of the tokens following the transfer.

Last month, Foxbit signed a deal with Gafisa, one of the four biggest domestic residential construction and real estate firms in Brazil. The agreement will allow Gafisa customers to pay for real estate using their cryptoasset holdings.
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