Alagoas Court Orders Brazilian Bitcoin Wallet to Return Investor's Balance Under Penalty of Fine

The Court of Justice of Alagoas (TJAL) ordered the former bitcoin wallet Bitfy to return the balance of a client, following a decision from the 9th civil court of the capital that took place on Monday (27). The analysis was conducted by Judge Gilvan de Santana Oliveira.

The case, to which Livecoins had exclusive access, reports the disappearance of funds belonging to investor Alexandre after the platform ceased operations in 2025. The company deactivated its customer service channels, leaving consumers without any support.

However, the situation changed when the company stopped operating, and the investor could no longer view his funds.

Alexandre attempted to use the recovery phrase in other applications after the company ceased operations in the country.

The provided code failed in all attempts and resulted in the continuous blocking of the acquired assets.

The lack of responses from the company constituted a clear violation of the rules of the Consumer Defense Code (CDC). The judge classified the group's actions as a failure in service provision and a breach of the duty to inform.

The defendants, both the wallet and its founder, received formal notifications to present their technical defense within the deadlines set by state law. They ignored the public authority's call and suffered the consequences of default in the action for loss compensation.

The surprise closure of operations imposed a barrier against the right to clarity in the commercial relationship. Thus, judges view the concealment of essential details as a conduct of misleading advertising based on the vulnerability of the customer.

The authority decreed the disregard of the legal entity of Bitfy to reach the assets of founder Lucas. This legal tactic aims to ensure the reimbursement of losses caused by the financial institution's insolvency to users.

The court ordered the blocking of R$ 32,000 from the partner's accounts through the Judiciary Asset Search System (Sisbajud). The seized amount will serve to cover part of the impact generated by the service failure to affected clients.

The corporation has a period of ten days to provide the technical means for recovering the bitcoin balances. Failure to comply with this order incurs a daily fine of R$ 500.00, with a cap set at R$ 40,000.

This company must refund the balance in reais at the current value on the payment date if the password fails definitively. The format of the sentence protects the victim's assets against price fluctuations in the crypto asset sector over time.

The judge also imposed a fine of R$ 15,000 for moral damages against the business administrators. Alexandre experienced significant frustration and insecurity with the disappearance of the bitcoins purchased with hard work and effort.

The ruling identifies the consumer as the weak link in the chain. The right to clear information safeguards the party with fewer technical resources in dealings with large financial platforms.

The minor theory applied in the conflict dismisses the need to prove the intention of fraud by the partners. The fact that the firm does not present funds already authorizes the pursuit of money in the personal accounts of the app creators.

It is worth noting that Bitfy offered a complete ecosystem for the acquisition and storage of cryptocurrencies. Thus, the magistrate understood this business model as an activity subject to the risks of harm imposed on end consumers.

This content is provided for general informational purposes only and doesn't constitute financial, investment, legal, or tax advice. Any events, rewards, online promotions, or related information mentioned herein should not be considered a recommendation, solicitation, or invitation to purchase, sell, trade, or otherwise deal in any crypto assets. Crypto assets are highly volatile and may result in loss. The availability of WEEX services, products, and related events may vary by region. You are responsible for ensuring that your participation is in accordance with applicable local laws and regulations.