Foxbit co-founder Gustavo Schiavon, known affectively as Guto, has passed away in a car accident in the Brazilian state of São Paulo.

Accident

While driving between Marília city and São Paulo capital, his car spun under heavy rain and got hit, back side first, by a large cargo truck.

The automobile was obliterated and reduced to a fraction of its size by the impact.

Guto was accompanied by his girlfriend Ariadny Rinolfi who survived the crash but is in serious condition under intensive care at a São Paulo hospital.

A second fatal victim was involved in a different automobile.

A total of 2 passenger cars and 2 large trucks were involved in the accident.

Foxbit

Schiavon, who held a degree in Information Systems, founded Foxbit in 2014. The business quickly became Brazil’s largest Bitcoin exchange.

In March 2018 Foxbit was hacked and lost over R$ 1 million in funds. The company had enough reserves to cover the customers’ balances and avoid a Mt. Gox like scenario.

Four partners founded Foxbit: Schiavon, João Canhada, Marcos Henrique and Felipe Trovão.

The Foxbit team earned several prizes and recognition for their innovative work with cryptocurrencies in Brazil.

Lawsuit

Also in 2018 Foxbit got involved in a landmark lawsuit against a bank which shut down their main account due to “concerns over money laundering security” although no evidence of any wrongdoing was presented in the case.

The bank argued was that it had the right to shut down accounts, at their sole discretion, whenever they felt they could “pose compliance or financial risks”.

The ruling became a negative precedent for cryptocurrency businesses in Brazil.

Later in the year, Brazil’s second highest court used this lawsuit to decide that banks had the right to unilaterally close bank accounts.

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