MP requests blocking of BRL 399 million from cryptocurrency firm

The Paraíba MP asked for BRL 399 million to be blocked from a cryptocurrency company that is deferring payments to customers and has been negotiating with prosecutors for a way out of the solution.

Customers, some of whom have also invested with Braiscompany, are still hurting from the company’s lack of support. The company does not meet the withdrawal requirements, not even the requirements of the Public Prosecution Service.

With the situation getting worse, the MP’s action seeks to protect investors by filing for a total blockade of the company.

Fiji cryptocurrency firm suspected of defaulting in Paraíba is target of new MP blocking action

The lawsuit has been brought by the Campina Grande Public Prosecution Service, which is closely following the case of Fiji Solutions.

In the request sent to the court, the regional director of Procon-MP, Sócrates da Costa Agra, requests through the CNIB that R$399 million be blocked from the company. The measure should also cover Renajud, real estate and other assets they own.

In addition, he proposes that the judiciary does not take into account Fiji’s legal personality, so that the measures also reach the equity of the group of companies and its leaders.

Another measure defended by the MP is blocking the accounts of the company and its ringleaders at cryptocurrency brokers Binance, Kraken, KuCoin, Bybit, Bitify and OKX. In this case, even Fiji officials could be affected by the blockade measure, if the judiciary agrees to prosecute the case.

Paraíba MP Asks Justice to Block Accounts, Assets and Cryptocurrency Brokers of a Company Suspected of Default
Paraíba MP is asking justice to block accounts, assets and cryptocurrency brokers of a company suspected of default. Play/process clip.

Fiji has to pay a fine if it enters into new contracts

The prosecutor of the Public Prosecutor’s Office of Paraíba is also asking the court to fine Fiji if the company enters into new contracts with customers, as it has failed to honor old commitments.

In addition, according to the MP, the passports of all company managers must be collected to prevent possible escape attempts from the country.

Notable in the MP’s request is that authorities want to conduct a technical inspection of the source code of the company’s program to better understand how the tool worked.

Another request that draws attention in the petition concerns a request for urgency for the process, so that the judicial authorities assess the case as quickly as possible.

Finally, a request for a judgment of BRL 5 million for a consumer protection fund was filed by the MP, who is vigorously suing the company suspected of default.

Blockchain tracking firm says Fiji filings show company is tech savvy

To the live coins, the Blockseer company, which tracks blockchains, said Fiji Solutions has shown that it does not know the technology and is acting in bad faith with its clients.

“The note presented on 31/03/2023, by the Technology Directorate of Fiji Solutions, in the person of its director, Bueno Aires José, ironically demonstrates nothing more than a gross lack of knowledge about technology and bad faith trying to , in his own words, “Paraiba society, the press and customers” in an offensive error.

Not even entering the caricatured tone of the note, filled with effect phrases worthy of the worst airport literature and with serious allegations leveled in a childish and baseless manner, it is clear that the simple defense of Fiji’s director of technology is that, in his opinion, it would be impossible for him to withdraw the values ​​owned by the brokerage firm due to the need to provide the code that protects the two-factor authentication, popularly known as 2FA, on a mobile phone that was not in their possession.

Partner Fiji, Buenos Aires
Partner from Fiji, Buenos. Aires. Playback/Social Networks.

“2FA, or “Two-Factor Authentication” in Portuguese, is a security method used to add an extra layer of protection when accessing online accounts, such as emails, social networks or banking services. In addition to the username and password, 2FA requires confirmation of a second factor of authentication to ensure that the person trying to access the account is the real owner.

KuCoin – the exchange on which Fiji held its assets – is required to use Google Authenticator to provide 2FA to its users. Google Authenticator is a mobile app that generates one-time, temporary verification codes and is used on multiple platforms around the world. The brokerage itself presents on its website guides on how this mechanism works (https://www.kucoin.com/pt/support/360014897913), which can even be disconnected by the account owner, so that access (and withdrawals) may have been performed without this authentication.

The content of the last note follows the same line as the previous notes and mainly follows the same line as the announcements that are frequently presented by companies that are active in the field of bogus investments. There is no doubt, then, that the Technology Director is not only trying to create justifications for his clients and the criminal prosecution authorities themselves as a way to delay any investigation into criminal responsibilities, but also to report alleged frauds that were never proven. , diverting attention from investigations and collective interests.

Blockseer is alert to this bogus move and will always be available with its services to all customers who have been harmed and to the Brazilian authorities, within what is reasonable for us.

Lawyers believe Fiji has been offering fake cryptocurrency lease investments

Also at Livecoins, lawyers Spencer Toth Sydow and Pedro Torres believe Fiji’s offer of cryptocurrency lease investments was false. If the suspicions are confirmed, the company is another one to leave a trail of losses.

“The case of Fiji Solutions can be characterized as a bogus investment disguised under a crypto asset lease – a modality that is totally unfeasible under various legal and operational aspects. Braiscompany and Rentalcoins, companies that used the same business modus operandi, are two clear examples of this. The representatives of these companies are under investigation for possible commission of crimes such as embezzlement, criminal organization, money laundering and financial pyramid.

Moreover, in the case of Fiji, there is misinformation on the part of corporate insiders, along with delays and gross errors regarding fundamental digital asset questions. These measures are common for companies in this field. This is done with the aim of misleading the authorities responsible for the investigations, and to try to convey a false sense of security and fairness to customers, who are hesitant to claim their rights in court to recover the amount owed. amounts to collect.”

Source: Live Coins

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