CVM requests cancellation of orders from Atlas Quantum. Photo: Tingey Injury Law Firm, Unsplash.
The dispute between Atlas Quantum and Securities Commission (CVM), which banned it from operating in 2019, took another step. After the arbitration company asked for compensation of R$ 3.167 billion, now it is the CVM that is asking for compensation, such as Atlas’ conviction for bad faith litigation and the payment of costs with lawyers.
The CVM’s defense is in a challenge that it delivered to the 24th Federal Civil Court of SĂŁo Paulo last week. Atlas requested both the nullity of decision CV 826/2019, which interrupted its operations, and compensation for material damages.
The Commission does not question the legitimacy of Atlas to ask for the decision to be challenged, “in view of the fact that they were reached by the order for the cessation of conduct”.
CVM includes information from Atlas that Atlas Project International owns the Quantum platform and provides bitcoin management and custody services through Atlas Quantum and, therefore, had relationships with foreign exchanges. The first did arbitration and Atlas BTC, the sale. And that several information requested by CVM, BTC did not have.
CVM says it did not approve Atlas Quantum model
“There is no doubt, therefore, that of the companies in the “Atlas group”, only Atlas
Project Internacional Ltd. provides bitcoin management and custody services through the Atlas Quantum platform”, says CVM.
And because Atlas Project is outside Brazil, CVM says that the legislation states that the plaintiff in a case in this situation must provide “sufficient security for the payment of costs and attorney fees of the opposing party in the actions he proposes, if he does not have in Brazil real estate that ensures their payment.”
The regulator also claims that the Superintendence of Market Relations and Intermediaries (SMI) concluded only that Atlas Quantum did not deal with securities. “There was, therefore, no evaluation or approval of the business model by the company, but only the finding, at that time, that it was not a question of securities.” The company’s claim is that the CVM had authorized its business model.
Thus, CVM’s requests also include “the extinction of the process without resolution of merit” and “rejection of all requests deducted by the authors against it”.
The answer to the case is signed by Celso Luiz Rocha Serra Filho, chief prosecutor, Luciana Silva Alves, deputy chief prosecutor, and Alessandra Bom Zanetti, federal prosecutor. That’s because it was the prosecutor’s office that sent the document.
*Report being updated.