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Wednesday, November 25, 2020

Chile-based crypto exchange denies fraud allegations

Chilean cryptocurrency exchange, Buda.com has denied allegations that it transferred client funds without authorization, a local news site has said. Per the report Itau bank now known as Itaú Unibanco, a private sector bank based in São Paulo, Brazil filed a lawsuit against the exchange and that both the bank and the exchange were set to appear before the country’s Tribunal for the Defense of Free Competition (TDLC).  

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The report further said that the private South American bank had also accused Buda of forgery and for creating a fake profile to allegedly facilitate the fraud. The report detailed the lawsuit that Buda “forged bank details, created a fake email account, and a false digital identity card,” to transfer $26,000 from a client’s current account in Itau Bank to Buda.com, and use it to acquire cryptocurrencies. 

The report added that on detecting the alleged fraud, the unnamed client lodged a complaint with the ‘Public Ministry’ but the bank used this as an opportunity to sue the exchange for ineffective compliance systems.

A Buda spokesperson, Diego Vera, said: 

The reasons why they accuse (Buda) of promoting scams are unknown since the theft of the credentials was from the client’s bank account with Itaú, not from our platform. 

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Buda.com is an exchange and wallet from Latin-America, with operations in Argentina, Chile (HQ), Colombia and Peru.

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