Bullish? Russian Court Orders SberBank to Restore Access to Blocked Account Involved in Bitcoin Trading

A Russian court ordered Sberbank to restore access for a customer involved in Bitcoin trading. The authorities added that the largest bank in Russia should not have blocked the account as the client had provided all the necessary information about his cryptocurrency operations.

Sberbank Had No Right to Ban The Account

The Sverdlovsk Regional Court in Yekaterinburg ordered Sberbank, also referred to as Sber, to unblock account services to a client who has been dealing with Bitcoin (BTC). According to the information, the customer’s name is Pavel R., and he is a resident of the small town of Revda.

The Russian court declared that the man’s account was active between May and August last year as he was also processing multiple transactions related to trades on cryptocurrency platforms. However, in August, Sber blocked his card under the suspicion that he was involved in money laundering operations as well as other criminal affairs.

Despite submitting all the necessary documents, explaining the source of funds, and the meaning of his endeavors, Russia’s largest bank did not resume the man’s services. Pavel R. later filed a claim and once again presented proof of his transactions. He went further, accusing Sber of violating his customer rights.

Following the process, the Yekaterinburg court established that the bank had no right to block Pavel’s card as his financial transactions were in accordance with the law. As a result, Sber must unblock the account and compensate the client’s legal costs.

Still, the Sverdlovsk Regional Court denied the customer’s claim for moral damages. It also ordered that he has to pay 5 thousand rubles ($68) to reimburse costs during the lawsuit.

Sberbank Planned to Launch Its Own Cryptocurrency

Russia’s largest bank has more history with the cryptocurrency industry as it reportedly sought approval to launch its own token through a blockchain platform at the beginning of the year. Back then, Anatoly Popov – deputy chairman of the board – confirmed the initiative:

“Sberbank filed an application with the Bank of Russia to register its blockchain platform in early January since digital financial assets in accordance with the law can be issued on a registered platform.”

Popov further explained that Sber had already tested blockchain technology and “saw that this solution works.”

Featured Image Courtesy of The Moscow Times