The justice of the state of São Paulo has again ruled that Binance, the largest cryptocurrency broker in the world, will return the cryptocurrencies of an investor whose mobile phone was stolen.
After losing his mobile device, the cryptocurrency investor was unable to fully access digital media and did not notice that his brokerage account had been hacked. It took him at least four days to access his account when he realized that his belongings had been stolen.
In court, he accused Binance of not providing services because transactions executed by criminals did not behave in the same way as his own.
In its defense, Binance claimed it had not failed to provide the service as all authentications configured on the author’s account had been validated and he still failed to communicate with the exchange to report the loss of the device.
Judge Fabiana Marini, of the 35th Civil Court of São Paulo, was responsible for analyzing the case.
Judge rejected expertise in ruling that Binance must return cryptocurrencies to investor whose mobile phone was stolen
When suing Binance in the São Paulo court, the investor claimed that the broker had not provided any services. According to him, since working with the brokerage, he has never maintained a high level of activity on the platform. In addition, he claimed that when he lost his mobile phone to thieves, he reported the matter on his answering machine.
In its defense, Binance claimed that the author did not report the theft of his mobile phone until 4 days after the incident. Since the transactions took place on a device with withdrawal capabilities and with two-factor authentication confirmations, the broker claims to have performed its function correctly.
In analyzing the case, the judge rejected a technical expertise to confirm the culprit in the case, analyzing that there was insufficient security in Binance’s services.
“With this I note the lack of adequate security when the defendant provided services that facilitated the fraud and, although he knew that the transaction was definitely different from the one normally carried out by his client, he authorized the transfer.”
Therefore, the judge ordered Binance to refund BRL 84,112.00 in cryptocurrencies to its client, paying the costs of the lawsuit and attorney’s fees, estimated at 10% of the value of the claim.
The decision is in first instance and Binance’s defense is subject to appeal.
Cryptocurrency exchange account care on mobile devices
It is noteworthy that the new case is similar to another reported by Livecoins, where another investor requested a refund of BRL 310 thousand and his request was also accepted by the court.
So it is clear that criminals are already stealing mobile devices from their victims in Brazil by directing their access to cryptocurrency brokers or wallets. As a result, taking care of account access is becoming increasingly important.
The recommendation of specialists in similar cases is that investors avoid leaving funds with brokers and, in case of loss of devices, immediately inform the institutions so that their accounts are blocked.
Source: Live Coins
Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.
