Crypto P2P Platform Sues Bank After Hacker Exploits Fuel Money Laundering Allegations
A cryptocurrency peer-to-peer (P2P) platform, whose owner was sentenced to five years in prison in Brazil, is now suing Banco Votorantim (BV). The platform seeks to overturn the sentence that has crippled its operations. The case revolves around millions of dollars allegedly received by the crypto vendor following a security breach in the “Abastece Aí” rewards system of the Ipiranga gas station chain.
Banco Votorantim is implicated in the lawsuit filed in São Paulo. The bank acts as a service provider for Abastece Aí, which is owned by Grupo Ultra (B3: UGPA3), the parent company of the Ipiranga gas station network.
Ipiranga operates a loyalty program called KMV – Kilometros de Vantagem, offering benefits like cashback and KMV points to customers who fuel up at their stations. These points can be redeemed for discounts on future purchases.
However, the financial processing and settlements for transactions made by customers of the Abastece Aí platform are not handled directly by Grupo Ultra. Abastece Aí connects to an API provided by Orbitall Payments, meaning that KMV customer transactions are processed within Orbitall’s IT environment.
Banco Votorantim is contracted to handle the financial settlement of these transactions, executing orders generated by the system. The lawsuit between Victory Trading, the crypto P2P platform, and Banco Votorantim is sealed, but details have emerged.
Millions Transferred Via Pix After Ipiranga System Breach
According to information provided by Banco Votorantim, hackers gained unauthorized access to the Orbitall system connected to Abastece Aí on August 11, 2024.
The hackers were able to issue payment orders from within the company’s network. Banco Votorantim, acting on these orders, allegedly transferred over R$33 million (approximately $6.5 million USD) via Pix, Brazil’s instant payment system, in hundreds of transactions of varying amounts.
Upon detecting the unusual flow of funds into accounts associated with Victory Trading, Banco Votorantim initiated legal action to freeze the bank accounts of the platform and its owner. Real estate and other assets linked to the company were also targeted, resulting in a court-ordered asset seizure.
The crypto entrepreneur’s attempt to overturn the decision was recently rejected by the São Paulo Court of Justice.
The P2P platform reportedly served a client identifying himself as “James” without requesting sufficient personal information to verify his identity. This lack of due diligence contributed to the owner’s conviction and sentencing to a semi-open prison regime.
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