Brazilian Crypto Exchange Snubs Court Deadline to Fix Withdrawals

Published at: Sept. 19, 2019

Brazilian cryptocurrency exchange and alleged pyramid scheme Atlas Quantum has rejected court deadlines to resolve its delayed Bitcoin (BTC) withdrawals.

Atlas Quantum may constitute a financial pyramid

As Cointelegraph Brasil reported on Sept. 17, the Federal Court of Brazil ruled that the exchange's current activities may constitute a financial pyramid. It therefore decided to immediately freeze the company’s assets and bank accounts and give the company 48 hours to resolve outstanding accounts. 

In a Sept. 18 response to the court's ruling and deadline, Atlas Quantum said there is no requirement to resolve the problem of late withdrawals by any given date.

The crypto exchange added that it does not agree with the federal court’s ruling that it is a financial pyramid scheme. “We are fully focused on resolving the issues at hand,” the exchange said.

The company's CEO, Rodrigo Marques, who launched the exchange in Brazil in 2015, reportedly recorded a video in an attempt to contain the withdrawal crisis that the company is currently facing.

Brazilian courts pursue alleged pyramid schemes

Cointelegraph previously reported that a court in Rio de Janeiro had ordered alleged investment scheme Unick Forex to pay $28,500 to a client who filed a lawsuit against the company for a delay in platform withdrawals and moral damages. As reported, the presiding judge granted a default judgment, which means Unick Forex did not show up in court to defend its case.

The State Court of Justice in Sao Paulo is also going after crypto companies and has made a block request to several Bitcoin trading companies — Atlas Quantum included. The courts are in search of virtual assets that belong to Miner, which is considered to be another financial pyramid scheme.

Tags
Related Posts
Judge Freezes Funds in Accounts Belonging to Embattled Brazilian Crypto Firm
A Sao Paulo court has blocked funds in bank accounts linked to Grupo Bitcoin Banco — with 726,630 reals (about $188,000 at press time) frozen, Cointelegraph Brazil reported on June 5. Two people, along with one company, have accused GBB of engaging in abusive practices after they were unable to make conversions back into reals or withdraw funds to their bank accounts because of a temporary suspension on transactions. The trio claimed they have a total 726,630 reals on GBB’s platform and urged a judge at the Court of Justice of the State of Sao Paulo to take urgent guardianship …
Bitcoin / June 5, 2019
UK Crackdown Pulls Thousands of Crypto Scams Offline
Over the past four months, the National Cyber Security Centre, or NCSC, removed over 300,000 URLs pertaining to fake celebrity-endorsed investment opportunities. More than a half of these sites belonged to fraudulent cryptocurrency investment schemes. Per an announcement published by the NCSC on August 14, an increasing number of these scams utilized fake endorsements from national celebrities, such as Ed Sheeran and Richard Branson. This raised red flags for authorities, prompting the launch of a massive retaliatory campaign. Ciaran Martin, CEO of the NCSC, commented: “These investment scams are a striking example of the kind of methods cyber criminals are …
Bitcoin / Aug. 14, 2020
Mobile Crypto Scam Targets Wealthy Indian Investors
A new cryptocurrency scam in India is targeting wealthy individuals using a fake mobile app. According to India TV News, cybercriminals are targeting high income individuals across India. Victims receive messages through social media groups asking them to sell and buy Bitcoin through a mobile app. This app, which supposedly acts as a crypto exchange, is actually entirely fraudulent. Once a user’s Bitcoin is deposited on the fake exchange, the scammers stop responding to queries from the victim and disappear. Manan Shah, founder and CEO of Avalance Global Solutions, said that an unidentified man lost over $50,000 while dealing with …
Adoption / Aug. 10, 2020
Crypto Scammers Turn Toward Terrorism With a Japanese Bomb Threat
Crypto terrorists threatened to bomb a government office on the Japanese island of Hokkaido. They told authorities that they would only disable the alleged explosive device if their crypto ransom was paid. According to FNN, the terrorists sent the Numata Town Hall an email stating they had installed a bomb in a women’s second-floor toilet. They claimed that as long as officials met their payment demands before 03:00 UTC on June 29, the bomb would not be detonated. However, this appears to have been a fake threat. The deadline set by the criminals has passed and the hall remains intact …
Bitcoin / July 29, 2020
AMFEIX Threatens Users Who Share Coverage That Criticizes the Company
Last week Cointelegraph published a story about investors having difficulty getting their money back from a crypto fund called AMFEIX, which promised high-yield profits for investors who sent them Bitcoin (BTC). Our story described more than 500 pending withdrawals from users trying to get their money back, and AMFEIX’s unsatisfactory communication with those users. The company addressed its users via its official Telegram channel after the story was published, suggesting that the withdrawal delays were due to technical difficulties that had been an issue since May. It also stated that “members who show loyalty to AMFEIX will have priority” in …
Bitcoin / July 28, 2020