17.01.2021

Brazilian Crypto Exchange Snubs Court Deadline to Fix Withdrawals

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

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

Atlas Quantum may constitute a financial pyramid

In a Sept. 18 response to the court’s ruling and deadline, Atlas Quantum stated that there is no actual deadline that requires them to resolve the problem of late withdrawals by any given date.

The crypto exchange further stated that they do not agree with the federal court’s ruling that claims 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 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.

BTSE Exchange Taps Into Crypto Demand by Increasing Request-for-Quote Limits

BTSE, a British Virgin Islands-based cryptocurrency exchange, has upped the limit for its over-the-counter request for quote (RFQ) due to April’s increasing demand for bitcoin.

The limit, which has been changed from $100,000 to $1 million, represents a ten-fold increase resulting from growing investor demand in digital assets, the exchange says.

It comes at a time when bitcoin’s continuous rally from its March 13 “Black Thursday” low of $3,850 saw prices reach as high as $9,463 on Thursday.

“After being extremely undervalued throughout the greater part of March, bitcoin has made a full recovery in just one and a half months,” Jonathan Leong CEO and co-founder of BTSE told CoinDesk. “Approaching the halving, I see the outlook as very bullish.”

An RFQ is a trading system or tool used to overcome issues of price slippage. Put simply RFQ is an electronic real-time message sent to liquidity providers connecting interested buyers or sellers.

“We’re hearing directly from our users that bitcoin and other alternative forms of finance are increasingly in demand. Users are demanding this limit increase,” Leong added.

The quote is provided by a provider, in response to an RFQ by other market participants (buyers/sellers). It is similar to the way trading pits on a stock exchange floor operate, where traders yell across the pit, seeking a market.

BTSE sought to raise $50 million in one of the first token offerings on the Liquid Network, the parallel system to bitcoin created by startup Blockstream.

After completing its private sale in February this year, BTSE offered 1 million BTSE tokens during their public token sale in March via the exchange. The tokens sold out within the first four hours, according to Leong.

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