Withdrawals to Be Quickly Restored, Company Says

The company expects that withdrawals will be restored “quickly,” as it announced on June 17.

This article is based on CoinDesk Brasil, a partnership between CoinDesk and InfoMoney, one of Brazil's leading news sources in finance sector. You can follow CoinDesk Brasil on Twitter.

On Tuesday, the government's payment system Pix resumed deposits in Brazilian reals on Binance, a global crypto exchange.

The withdrawal of Brazilian reals via Pix by Binance is still suspended, and it should be resumed "soon," the exchange said in a statement to CoinDesk.

After terminating its partnership with the local payment gateway Capitual, which had been operating Binance's deposits and withdrawals through Pix since 2020, the company suspended deposits and withdrawals on Pix on June 17.

Binance's partnership with Latam Gateway, a Brazilian payment platform that uses BS2 bank accounts, gives the exchange access to Pix, a network of banks licensed by Brazil's Central Bank (BC).

In a statement, Binance said it would file legal action against Capitual. Capitual responded that it would sue Binance because it had violated a BC regulation requiring exchanges to isolate user accounts.

According to Folha de S.Paulo, a company that had one of Capitual's founders as a partner allegedly helped launder money for Glaidson Acácio dos Santos, known in Brazil as the "Bitcoin Pharaoh," who is under arrest for allegedly leading a criminal organization responsible for promoting Ponzi schemes involving cryptocurrencies.

The local newspaper Valor Econômico reported that the São Paulo Court of Justice (TJSP) blocked 451.6 million Brazilian reais ($84.6 million) from Capitual's accounts, which would belong to Binance clients on Sunday (https://valor.globo.com/legisl

In a statement, Binance said that Capitual's "actions conflict with its values," and assured that it "has taken all necessary and appropriate measures in relation to Capitual to protect users and their resources, ensuring they are not adversely affected by the change" of payment provider.

This article was translated by Andrés Engler, and edited by CoinDesk. The original Portuguese can be found here.