Chilean Cryptocurrency Exchange and Itau Bank’s Lawsuit Encounters New Allegations

Chile's and Itau Bank are set to appear before the country’s Tribunal Defense of Free Competition (TDLC) owing to the lawsuit filed.

By · Sep 7, 2020 . 5min read

Chile Crypto exchange news

The conflict between the Itaú bank and the Buda exchange takes a new turn as both parties assemble at the Tribunal for the Defense of Free Competition (TDLC) in Chile. According to a local news site, Chilean cryptocurrency exchange,, has dismissed accusations that it transferred client funds without permission. As per the report, Itau bank, now recognized as Itaú Unibanco, a private sector bank based in São Paulo, Brazil, filed a suit against the exchange. 

The report further elucidated that Buda fabricated bank details, produced a fake email account, and a false digital identity card, to transfer $26,000 from a client’s current account in Itau Bank to, during February 2020. The transfer made was to acquire cryptocurrencies. Once the fraud was out, the client formalized the complaint with the public ministry. At the same time, Itaú claimed that Buda exchange does not have sufficient regulatory compliance systems. 

Is Chile’s Complying to Regulations?

Diego Vera, head of communications for Buda, states that the reasons they are accused of advertising scams are strange. Since, the credentials’ theft was from the client’s bank account with Itaú, not from Buda platform. According to Diego Vera, it was not Buda’s fault that the criminals chose to buy cryptocurrencies on its platform. Reiterating the allegations’ baseless, the spokesperson gives a hypothetical case in which a thief robs a bank. He further decides to go and buy a television with the money. Moreover, he argues that if the person who sells the television is at fault or the bank’s lack of security.

Vera mentioned that he uses dynamic keys to accessing the platform. He said that in context to the allegations that the exchange platform does not comply with regulatory requirements. He elucidates that it uses dynamic keys in case of accessing the platform. Furthermore, know your customer (KYC) processes undertake before accounts are created. However, it uses email ids to deter logging in from unregistered IP addresses.

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