In a decision to uphold the understanding of the first instance court, the 36th Chamber of the Court of Appeals of the State of São Paulo rejected a technical appeal attempting to overturn a decision that rejected the plea for attachment of bitcoins. According to the rapporteur, although bitcoin is an intangible asset with patrimonial content that, in theory, could be subject to attachment, a decision that would order the attachment would not be effective because it is impossible to subpoena the entire internet network.
The decision, which is still subject to appeal to the Superior Court of Justice, emphasized that the plaintiff’s plea was overly generic and that it was not even able to prove that the defendant actually owned bitcoins.
Observations in this update about Brazilian law are by Tauil & Chequer Advogados. They are not intended to provide legal advice to any entity; any entity considering the possibility of a transaction must seek advice tailored to its particular circumstances.