Leumi Bank Can't Stop Service Bits of Gold Exchange

This decision was made by the The Supreme Court of Israel
27 February 2018   788

The Supreme Court of Israel released a temporary injunction order forbidding Bank Leumi from sweepingly halting the account activity of the Bits of Gold bitcoin exchange. This is reported by News Bitcoin Com.

The court’s decision enables us to focus on continuing to establish the crypto community in Israel, and we will continue to lead the field in order to give digital coins the place which they deserve in the Israeli economy – as a tremendous growth engine for hi-tech and the financial industry.
 

Yuval Roash

CEO, Bits of Gold 

This decision is temporary, which will be effective for the period of consideration of the case in the appellate instance. Bits of Gold is a client of Leumi Bank since 2014, but in 2015 the bank decided to stop the account maintenance despite the absence of violations by the company. The bank called the reason for its decision the increased risks associated with operations with crypto-currencies.

The bank respects the decion of the court. However, as long as the matter is not regulated by orderly regulatory directives, the bank’s exposure to the client’s activity in bitcoin will be valid – and not only towards the regulators in Israel who are obligated to respect the decisions of the Supreme Court, but also towards foreign regulators who do not consider themselves bound by the decisions of Israeli law. Therefore, as long as no binding legal provisions are determined by the regulator and the relevant parties, the bank will continue to manage the case until the temporary injunction is removed.
 

Bank Leumi

This is a big victory for the Israeli cryptocurrency community and a precedent-setting event.

Cryptopia to Provide New Info Regarding Compensations

The exchange isn't going to refund deposits, sent more than 24 hours after the security breach
25 March 2019   30

The New Zealand cryptocurrency exchange Cryptopia provided additional information regarding the procedure for paying compensation to users who suffered from a hacker attack in January.

According to today's announcement, users who have made deposits to their addresses more than 24 hours after the company reported the incident, that is, after 16/01/2019 12:00AM NZT , will not be able to claim payment in accordance with the previously announced plan.

The Exchange also draws attention to the fact that it currently does not have a specific deadline for returning assets to users to whom such payments are due. Cryptopia addresses are still not available for deposits, so users shouldn't try to transfer funds to them until further notice. After the renewal of deposits, clients of the exchange will need to regenerate the purse addresses for each of the supported cryptocurrencies.

As analysts noted, the funds withdrawal continued even after the official announcement and the start of a police investigation.