Lawsuits against the startup for delays in the withdrawal of funds reach USD 246 thousand. The company confirmed that four of the eleven senior managers were dismissed.
The case of Atlas Quantum, a Brazil-based Bitcoin investment fund, seems to be becoming more complicated after the multiple lawsuits from users who demand that their funds be returned. On Thursday, September 12th, the company confirmed to some local media that almost half of its governing body was dismissed, after intense rumors of internal disagreements.
According to the information provided, four of the eleven main directors were ordered to leave their positions within the company. However, the firm limited itself to commenting that it is undergoing a transition period and did not give any details about the reasons that motivated it to take such a measure.
Among the executives that were dismissed, they mentioned Marcelo Melo, the Executive Director of Marketing; Emília Campos, the Executive Director of Compliance; Bruno Peroni, the Director of Sales; and Rodolfo Marun, the Director of Technology.
Before this announcement was made, information emerged about the alleged discomfort of several company executives, who had removed Atlas Quantum from their LinkedIn network profile. According to Portal Bitcoin, that was the case of one of the outgoing directors, attorney Emília Campos, who had commented on a WhatsApp group that she was tired of having contacts asking questions that she could not answer.
Company’s Case Becomes More Complicated
Atlas Quantum, whose main product is an algorithm that performs operations with Bitcoin through automated financial arbitration, has been facing the ban on offering cryptocurrency investments in Brazil since mid-August.
This measure was imposed by the Securities and Exchange Commission (CVM), the Brazilian capital market authority, which claims that the services offered by the startup fit the definition of Collective Investment Agreements (CIC). This type of financial instruments is regulated by the CVM, thus the institution considers that Atlas Quantum had to request the authorization of the official body to offer this service.
Even though the company notified users that their operations would be maintained normally while solving their situation with the CVM, there was a high demand for funds withdrawal. To face the situation, Atlas decided to extend the time for responses for up to 30 days.
As a consequence, users initiated lawsuits against the startup, which resulted in a precautionary measure issued by a court in the city of São Paulo, where Atlas Quantum is urged to hand over the funds to users. A growing number of investors have been taking legal action, with which the amount to be reimbursed rose to almost one million Brazilian reais, equivalent to more than USD 246 thousand, so far in September 2019.
It should be noted that in Brazil no specific regulation has still been introduced concerning the cryptocurrency sector. Until now, existing stock market and financial sector regulations are the laws that apply to this market. However, the Brazilian parliament seems to be interested in developing specific laws that adapt to the operation of the cryptocurrency sector in the South American country.
By Willmen Blanco