In a lawsuit unrelated to the Ponzi scheme, Chile’s Court of Defense of Free Competition (TDLC) ruled that the checking account of Bud, a cryptocurrency exchange that supports Latin America, was closed by two major banks.

The Chilean court rejected the petition from the two banks to continue checking the accounts closed by the cryptocurrency exchange Buda

According to Diario Financiero, TDLC decided that Banco Itaú and Banco Estado should keep Buda’s bank account open, which was closed in 2018 during an investigation of a fake company called Terra Finance and the company turned into a scam.

The lawsuit filed by four victims of the scheme-fraud totaling 100 million Chilean pesos (approximately US$200,000)-said they were users of cryptocurrency exchanges. At the time, the Bank of Italy (Banco Itaú) supported the decision, claiming that Buda allowed its platform to be used indirectly for false companies like Terra Terra, and did not take any action to stop it:

“Buda indirectly allows other cryptocurrency exchanges with recognized risks to use Itaú’s system, but is powerless.”

However, the Chilean court did not adequately consider such requirements, so the following resolution was issued in response to this matter:

The new information provided will not damage the serious presumption of the claimed rights or the facts condemned in the litigation.

The legal battle is still ongoing

Samuel Cañas, Buda’s chief legal officer, stated in the local media:

The bank failed to provide enough information to refute the presumption that it seriously threatened free competition. The court has decided to take preventive measures in favor of against free competition.

But the legal battle is not over yet, Said Guillermo Torrealba, the chief executive of Buda, said that because the lawyer told him that there was one year left. He still pointed out that the exchange is proceeding “on the right path” because four of the five judges voted for Buda instead of three votes in the last seat.

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