Brazilian crypto exchange faces lawsuits from clients over withdrawal issues

Cryptocurrency • June 19, 2019, 4:45AM EDT
UPDATED: June 19, 2019, 4:32AM EDT
The Block

Brazilian cryptocurrency exchange NegocieCoins is facing several lawsuits from customers over withdrawal issues, according to a CoinTelegraph report.

Customers are reportedly unable to access funds from NegocieCoins, which is operated by Bitcoin Bank Group. The group is said to be facing lawsuits from customers in at least ten states of Brazil.

Cryptocurrency data provider CoinMarketCap’s page for NegocieCoins also states: “We have received reports that user deposits and withdrawals are impeded. Please be careful with your funds.”

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Some customers are even willing to cash out their frozen bitcoins at a discount of up to 90% on social media platforms, according to the report.

NegocieCoins is reportedly citing malicious activity as the reason for the delay in withdrawals. The Bitcoin Bank Group, on the other hand, has reportedly been investigating the activity and has subsequently blocked 2,568 accounts and shared related information to police.

NegocieCoins was among the 48 exchanges The Block included in last month's for fake trading volumes analysis. The analysis focused on the exchanges' monthly traffic from November 2018 to April 2019 to get a picture of real volumes in the cryptocurrency market.

According to CoinMarketCap, NegocieCoins’s volume for bitcoin trading stood at $1.3 billion over the last 24-hours.

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Yogita Khatri is a senior reporter at The Block, covering all things crypto. As one of the earliest team members, Yogita has played a pivotal role in breaking numerous stories, exclusives and scoops. With nearly 3,000 articles under her belt, Yogita holds the records as The Block's most-published and most-read author of all time. Prior to joining The Block, Yogita worked at crypto publication CoinDesk and The Economic Times, where she wrote on personal finance. To contact her, email: [email protected]. For her latest work, follow her on X @Yogita_Khatri5.

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