A Brazilian cryptocurrency trading firm only has one day to pay back its two aggrieved investors. The firm, Atlas Quantum, has been having issues with its finances ever since Brazil’s financial markets regulator cracked down on it two months ago. However, according to a new report, a local court has demanded that it pays back its investors in the next 24 hours.
Atlas Quantum has been on the news in recent months after it collided with the regulators, and its woes don’t seem to be coming to an end soon. According to a report by BeInCrypto Brazil, a local court has ordered that the company deposit over $250,000 worth of BTC to refund two of its aggrieved investors who want their money back. The report states that one of the investors has been waiting on a withdrawal from the platform since September 4, 2019.
Atlas is a crypto arbitrage firm that received widespread popularity for its promises of guaranteed returns and easy withdrawals. The company described its systems as having the ability to identify price differences across multiple crypto exchanges. The system then purportedly buys the crypto at the lowest price and sells it at the highest, all this done automatically.
It was going well for the company until regulators started cracking down on it and this is when it all started unraveling. The first thing that was affected was the withdrawal of funds. After the investors filed a lawsuit against the firm, its accounts were frozen and it was ordered to sort out the outstanding accounts in 48 hours. The court further described it as a pyramid scheme.
However, as CoinGeek reported in September, the company decided to defy this order and said that while it was working to resolve the issue, it wasn’t under any obligation to do it in the given timeline.
Whether the company will adhere to the new deadline to repay its investors remains to be seen. For Atlas, the challenge is much bigger, given that international crypto exchanges have purportedly limited its ability to cash out from its accounts after the irregular behavior by its clients. But even this claim has been disputed by some exchanges such as HitBTC.
New to blockchain? Check out CoinGeek’s Blockchain for Beginners section, the ultimate resource guide to learn more about blockchain technology.
