Rabobank Ordered to Compensate Decos for Forced Bitcoin Sales: What You Need to Know
Miner Unjustly Forced to Sell Bitcoin
Decos, a Dutch IT company, has won its appeal in court against Rabobank, which ruled that the bank must compensate Decos for damages or lost profits. In 2019, the bank instructed Decos to immediately cease all its Bitcoin (BTC) activities. Decos had been engaged in Bitcoin mining since 2013 and was forced to sell all its bitcoin holdings. However, the company decided to take legal action, leading to this recent development, as reported by the Financieel Dagblad.
The ruling in favor of Decos is based on the fact that Rabobank’s crypto policy was not sufficiently communicated to the company in 2019, resulting in Decos being unprepared for the forced selling of its Bitcoin. Additionally, Decos was given a mere three months to discontinue all its crypto activities, which the court deemed to be an unreasonably short notice.
Lack of Transparency in Rabobank’s Crypto Policy
Rabobank’s crypto policy, implemented in 2019, prohibits its business customers from using their accounts for buying or selling cryptocurrency due to associated security risks according to the bank. However, it was determined that Rabobank did not adequately communicate this policy to Decos at the time.
The court ruled that Rabobank’s three-month timeline for Decos to cease all crypto-related activities was insufficient. In contrast, in 2021, Rabobank released an open letter to its business customers, detailing its crypto policy.
Rabobank Faces Substantial Compensation Payments
The exact amount Rabobank will have to pay Decos in compensation is still unknown. In 2019, Decos was forced to sell 95 bitcoins, valued at 1 million euros at the time. However, during the subsequent crypto bull market, the value of those bitcoins surged to 7.5 million euros. Currently, the value of 95 bitcoins stands at approximately 2.5 million dollars.
Negotiations for Compensation
The next step will involve negotiations between Rabobank and Decos to determine the final amount of compensation. Decos’ legal representatives have confirmed that these negotiations have not yet commenced but express their satisfaction with the court’s ruling.