Security· ★★· bearish·

Onilx investors sue to recover funds as Brazil's federal police open probe

  • —CVM issued a stop order against Onilx, triggering a rush of withdrawal requests
  • —Court allowed freezing of crypto assets held by the companies and Fabio Lino at several exchanges
  • —Nearly 700 complaints about blocked withdrawals have piled up on Reclame Aqui
  • —No application for a crypto exchange license with Brazil's central bank was filed by October 19
Why it matters: The case highlights risks of unregulated investment schemes in Brazil and adds pressure on similar operations.
Source: Livecoins
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