YEREVAN (CoinChapter.com) — A Massachusetts appeals court dismissed a $751,000 lawsuit filed by Lourenco Garcia against Santander Bank. The decision, issued on April 18, 2025, ended a two-year legal dispute involving a cryptocurrency scam.
Garcia lost the funds after making authorized debit and wire transfers between December 2021 and January 2022. The court ruled Santander had no legal duty to block or investigate the transactions. Garcia’s claims for breach of contract, misrepresentation, and consumer protection violations were all rejected.
Crypto Scam Involved CoinEgg and Crypto.com
Garcia used his Santander checking and savings accounts to complete two debit card payments and seven wire transfers. The money went to Metropolitan Commercial Bank of New York. From there, it was used to buy cryptocurrency on Crypto.com and a platform named CoinEgg.
Later, Garcia learned that CoinEgg was a scam. His total loss amounted to $751,000. He then sued Santander Bank, claiming the institution should have identified and stopped what he called suspicious activity. He said the bank failed to prevent him from transferring money to a fraudulent crypto platform.
However, the court found that Garcia authorized all transactions himself. He did not notify Santander of any concerns until after the transfers were completed and the money lost.
Santander Bank Had No Legal Duty, Court Says
The court reviewed the Santander customer agreement, which stated that the bank “may” act in suspected fraud cases. The word “may” gave the bank permission, not an obligation. The panel said there was no legal requirement under the agreement or Massachusetts law for Santander to stop customer-approved transfers.
Garcia also referred to Santander’s public statements. On its website, the bank says it may contact customers about suspicious activity. But the court ruled that this statement did not create a binding duty.
The ruling emphasized that no state regulations required banks to investigate or block every transfer. This applied even in high-value crypto cases.
Garcia’s Two-Year Legal Challenge Ends
Garcia filed his original complaint in October 2022. The Superior Court dismissed the lawsuit, and the Massachusetts Appeals Court upheld that decision on April 18, 2025.
The panel’s ruling noted that banks are not liable when customers send money voluntarily—even if the destination turns out to be a scam. The decision was not published, so it has limited legal precedent. However, it reinforces that banks define their role through contracts, not customer expectations.
