Supreme Court of Chile validates decision to close Chilean crypto exchange's bank accounts

Quick Take

  • BancoEstado closed Orionx’s bank accounts using a unilateral termination clause
  • Orionx argued that BancoEstado’s decision was abusive and illegitimate, and filed an appeal to the Supreme Court of Chile
  • The Court rejected their appeal, ignoring a legal principle that allows any activity not expressly forbidden 
  • The ruling is not a positive sign for crypto in Chile

The Block is delighted to bring you expert cryptocurrency legal analysis courtesy of Stephen Palley (@stephendpalley) and Nelson M. Rosario (@nelsonmrosario). They summarize three cryptocurrency-related cases on a weekly basis and have given The Block permission to republish their commentary and analysis in full. Part III of this week's analysis, Crypto Caselaw Minute, is below.

There are four billion reasons to read this week’s CCM. Palley looks at a Florida case that deals with the alleged misappropriation of $4 Billion USD in bitcoin, Rosario writes up a new lawsuit filed in federal court in NY that concerns a crypto investment scheme gone wrong, and finally we are lucky to have another guest post from attorney Andrés Chomczyk who gives us the 411 on a bad case for crypto from the Chilean Supreme Court. (As always, Rosario summaries are “NMR” and Palley summaries are “SDP”, and for this week our guest summary is labeled “ACH.”)

Disclaimer: These summaries are provided for educational purposes only by Nelson Rosario [twitter: @nelsonmrosario] and Stephen Palley [twitter: @stephendpalley]. They are not legal advice. These are our opinions only, aren’t authorized by any past, present or future client or employer. Also we might change our minds. We contain multitudes. (Picture credit: Pixabay; CC0 Creative Commons)

[related id=1]Orionx SpA contra del Banco del Estado de Chile (Chilean Supreme Court, 3d Chamber, 12/3/2018). [ACH]

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