Chilean cryptocurrency exchange, Badu.com has denied allegations that it fraudulently transferred client funds without authorization. The fraud allegations are being reported by Itau bank and both parties are set to appear before the country’s Tribunal for the Defense of Free Competition (TDLC), which must rule on the case.
The Itau Bank, which initially reported the complaint in February, reiterated its position on September 2 that Badu is perpetrating fraud by not adhering regulations.
According to a report in Criptonoticias, the bank is also accusing Badu of forgery and the use of a fake profile to facilitate the fraud.
During the last days of February 2020, using forged bank details, a false email account, and a digital copy identity card, Badu managed to transfer $26,000 (20 million pesos) from a client’s current account to Buda.com. A user profile had been created in the name of this person (victim) and this was used to illegally to acquire cryptocurrencies.
The report adds that on detecting alleged fraud, the client…