Onilx investors seek judicial aid as Federal Police investigate company

Investors in Onilx, part of the Onil Group, are turning to the Brazilian judiciary to recover funds following failed withdrawal promises. Legal proceedings have led to court orders to freeze cryptocurrencies held by the company and its owner, Fábio Lino, across various exchanges including Mercado Bitcoin, Foxbit, and Bybit.

The Brazilian Securities and Exchange Commission (CVM) previously issued a stop order against the Paraná-based firm, triggering a rush of withdrawal attempts by clients. While the company's defense suggested they would apply for cryptocurrency broker status with the Central Bank of Brazil by October 30, no such application has been filed as of October 19.

Federal Police in Curitiba, led by Delegate Filipe Pace, have initiated an investigation into the business. Meanwhile, consumer complaint platforms report hundreds of grievances from dissatisfied clients regarding the lack of transparency and access to their assets.