The estimated debt of Bitcoin Banco to its users amounts to more than USD 600 million. Grupo Bitcoin Banco broke the law by not submitting documents about its accounting status.
A new episode of the proceedings against Grupo Bitcoin Banco led the court to prevent the company’s judicial recovery from continuing. Second instance judge, Espedito Reis do Amaral, ordered last April 8th to conduct an expert investigation to verify the actual status of the recoveries.
The estimated debt of Bitcoin Banco to its users amounts to 2.7 billion reais (nearly USD 638 million), according to the manager of the lawsuit established on November 27th, 2019. However, there is a possibility that the company will appeal against this amount.
A total of 31 people filed the lawsuit, which is a class action. They included Zater, the Brazilian exchange that GBB inaugurated some time ago, in the first description. However, it does not appear in the body of the sentence, which indicates that it is a mistake of the judicial system.
According to local media, the company says that the judicial recovery remains active and they will not appeal against the request. Therefore, it is rather a technicality of the law, since the decision is not on the suspension or not of such recovery.
This means that people will be able to continue enabling themselves during the proceedings. However, for the recovery to continue, the GBB will have to undergo exert investigation to verify that its companies are still in a position to rise and pay its creditors.
All this occurs because Bitcoin Banco did not submit the necessary documents to show its real accounting and financial status. In this regard, the judge of the Court of Justice of the State of Paraná (TJPR) considers that the Court should have granted the GBB the request, only after conducting an expert investigation on the financial health and economy of the company.
The Court will appoint the expert who will conduct the investigation, which will then analyze the viability of the company in both now and the past. This will be a way of evaluating whether customer payment is still possible.
Legal Decision on Bitcoin Banco
All these problems, as well as the accusations of fraud and the recovery request, have irreversibly damaged the image of the GBB. Consequently, no one else wants to invest his or her resources in that platform.
According to Amaral, despite not having any connection with the other judges, the conduction of prior expertise is the measure that will not cause losses to the parties.
On the contrary, the judge of the second instance stated that the measure would prevent judicial recovery from failing and the judicial apparatus from moving unnecessarily. He said that it is necessary to reform the aggravated decision comprehensively. This is because all the elements for Judicial Recovery need to undergo an analysis before he grants the judicial proceedings.
According to the judge, the professional that he appointed will have a maximum of 5 days to submit the document showing the debtor’s actual operating status and its documentary regularity. Immediately after that, the judge will issue the decision, without the parties’ hearing.
By Alexander Salazar
