x
--d : --h : --m : --s
Get tickets
Verified on Po.et Created with Sketch. Verified on Po.et

Dutch Trader Loses Reclamation Suit Against Banks That Froze His Accounts

by

        Dutch Trader Loses Reclamation Suit Against Banks That Froze His Accounts
Dutch Trader Loses Reclamation Suit Against Banks That Froze His Accounts

In November 2016, a Dutch cryptotrader tried to buy his first 10 bitcoin, first using funds from his ING bank and later from ABN Amro. Both banks denied the transactions. He subsequently filed a complaint with Kifid (Financial Services Complaints Institute), a resource that mediates between consumers and small businesses when there are complaints about financial products or services.

According to the complaint, the banks claimed the man’s transactions were denied due to fraud prevention measures. It argued, however, that fraud prevention isn’t the reason why ING and ABN denied the transactions. Instead, the complainant accused both banks of blocking his accounts for commercial reasons that were concealed as fraud prevention measures. ING and ABN Amro denied the accusation.

The aspiring trader filed suit for €43,220 (~$50,000). He arrived at this figure by projecting the gains he would have realized if he bought bitcoin at €330 (~$385) and sold at €2,500 (~$3,000 USD).

The Kifid ruling states that it does not consider this lack of ability to trade in any way relevant. Even if the banks refuse to perform a service, it isn’t their responsibility to compensate clients. In addition, the ruling states that the complainant failed to demonstrate that the acquisition of bitcoin was rendered impossible because of the actions of the banks: He could have tried to work with another bank.

Both ING and ABN claimed that once the block had been lifted on his account, he could have purchased the bitcoins. They both claim that the unblocking of the account was delayed for security reasons and the fact that the customer had set their account preferences to deny telephone contact.

Ultimately, the ruling determined that the potential bitcoin trader had no one to blame but himself for not securing the 10 bitcoin and realizing any potential profits.



Recommended

Indictments Issued for Two Individuals for Running “Shadow Banking” Operation

U.S. Attorney's office for the Southern District of New York has charged two individuals of providing “shadow banking” services for crypto exchanges.

Jimmy Aki

“Holders Are Not at Risk”: Bitfinex Lawyer Responds to NY Attorney General

Bitfinex and Tether’s legal counsel has written a response to the New York Attorney General’s (NYAG) ex parte order, which claims that Bitifinex used Tether’s reserves to cover some $850 million in losses.

Colin Harper

Bitfinex Faces Legal Action From NY Attorney General: Here’s What This Means

The New York Office of the Attorney General (AG) has opened a legal probe into the business operations of Bitfinex and related stablecoin issuer Tether (USDT). But what exactly does this mean for the duo and for the Bitcoin industry at large?

Aaron van Wirdum and Colin Harper

New York Makes First Money Laundering Conviction Involving Cryptocurrency

In what the Manhattan District Attorney calls the first crypto money laundering conviction in New York, two defendants have pleaded guilty to running a drug trafficking business that laundered millions of dollars in Western Union and crypto payments.

Jimmy Aki