Crypto Events

Story: Court Dismisses $751K Crypto Scam Lawsuit Against Santander

By Sakamoto Nashi

1 / 10

A Massachusetts appeals court has ruled in favor of Santander Bank in a closely watched case involving a customer who lost over $750,000 in a cryptocurrency scam, dismissing the…

2 / 10

The lawsuit was brought by Lourenco Garcia, a Massachusetts resident who claimed that between December 2021 and January 2022, he was tricked into transferring large sums of money…

3 / 10

Garcia later discovered that CoinEgg was not a real trading platform but a fraudulent website designed to trick investors into depositing money with no possibility of return.

4 / 10

In his legal complaint, Garcia alleged breach of contract, negligent misrepresentation, and violations of Massachusetts consumer protection laws.

5 / 10

However, the appeals court rejected those arguments. The panel found that while Santander’s customer agreement stated the bank may act if fraud is suspected, it did not create a…

6 / 10

The judges also dismissed the claim that the bank’s promotional language created a binding duty, noting that general assurances on a website do not override the terms of a signed…

7 / 10

While the ruling is unpublished and does not serve as binding precedent, it reinforces a growing legal consensus that banks are not liable for losses in customer-initiated…

8 / 10

The decision has broader implications for consumers navigating the rapidly evolving world of digital finance.

9 / 10

This case serves as a cautionary tale for anyone considering large investments in digital assets.

10 / 10

Garcia’s financial loss, though tragic, highlights the critical need for awareness and due diligence in the cryptocurrency space.

The Currency Analytics

Want the full story?