The first cryptocurrency trial in Singapore involving a claim of some BTC 3,085 due to a trade reversal by Quoine exchange began yesterday in Singapore International Commercial Court (SICC).
On 19 April 2017, market maker B2C2 sued Quoine for the unauthorized reversal of 7 trade orders amounting to BTC 3,092 placed by the plaintiff on the defendant’s exchange platform. Quione executed the trade under the impression of a market price value of BTC 10 to ETH 1, thereby fulling a series of 7 orders belonging to B2C2, costing the exchange BTC 3092.517116 for ETH 309.2518.
However, the trade was reversed the next day without prior authorization from the market maker, resulting in a deduction of funds from the plaintiff’s account with the exchange. The defendant claimed that the said transaction orders occurred during a glitch in the system and that the plaintiff sought to take advantage of this.
An application for a summary hearing sought by B2C2 to recover BTC 3,084.78582325 from Quoine was held on 5 December 2017, the outcome of which led to SICC Judge Simon Thorley’s decision for the case to go on trial. Dismissing the application for a summary judgment, he said:
“In the present case, I do not consider that the plaintiff’s responses to the defendant’s arguments are sufficient to deny it the right to a trial — the defendant’s case on the mistake itself is a cogent one, and I accept that a more thorough investigation of the facts behind the setting of the abnormally high offer price is justified in order to place the court in a proper position fully to assess the state of the plaintiff’s knowledge.”
Almost a year has gone by and the trial, which is expected to conclude within a week, commenced yesterday (21 November), with B2C2 founder Maxime Boonen maintaining his side of the claim. The contention is that nothing in the agreement between B2C2 and Quoine gave the exchange the right to reverse orders based on the exchange’s role as the “custodian of trust” of B2C2’s funds. However, Quoine pointed out a risk disclosure clause stating that it could cancel any transaction that “took effect based on an aberrant value”.
But the point here is what happens to the completed transactions which Quoine claimed were completed under a system glitch. When questioned about his role as a market maker in stabilizing prices, Maxime argued that market prices are taken as they are.
The trial is expected to conclude next week with Quoine’s CTO Mario Antonio Gomez Lozada to provide alternate insight to what happened over a year ago.
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