While cryptocurrency scams continue to plague investors worldwide, one Massachusetts man just learned a $751,000 lesson about bank liability the hard way. Lourenco Garcia conducted multiple transfers between December 2021 and January 2022, sending his hard-earned cash through Metropolitan Commercial Bank of New York to purchase crypto on Crypto.com and CoinEgg. Spoiler alert: CoinEgg turned out to be fraudulent, and his money vanished faster than a crypto bubble bursting. Total industry scam losses have reached $6 billion in 2025 alone.
Garcia didn’t take this lying down. He sued Santander, arguing they should have spotted these suspicious transfers and stopped him from making what turned out to be a colossal mistake. Nice try, but the Massachusetts Appeals Court wasn’t buying it. They upheld the dismissal of his lawsuit with what basically amounted to a legal shrug. The bank has since implemented strict transfer limits to protect customers from similar crypto scams.
The court’s message was crystal clear: if you authorized the transaction, it’s on you – not the bank. Those fancy marketing promises about “contacting customers” on Santander’s website? Just pretty words with no legal bite, according to the judges. Unlike smart contracts, traditional banking transactions don’t automatically enforce safety protocols or execute predetermined conditions.
Massachusetts law doesn’t require banks to play crypto detective, even when the numbers look fishy. The ruling sent shockwaves through the banking industry, but not the kind that keep executives up at night. If anything, banks are breathing easier knowing they won’t be held responsible every time a customer falls for a crypto scam.
All those wire transfers Garcia made? Completely legitimate from the bank’s perspective – he authorized every single one.
This case sets a precedent that’s about as subtle as a sledgehammer: banks aren’t your crypto guardians. The court showed sympathy for Garcia’s situation, but sympathy doesn’t pay the bills or change the law.
It’s a stark reminder that in the wild west of cryptocurrency, you’re often riding solo. The decision reinforces what many already suspected – when it comes to crypto scams, the bank’s responsibility ends where your authorization begins.
