Monday, December 16, 2019

Quoine Exchange Sued to Become Singapore’s First Ever BTC Case

Adedamola Bada
I'm Damola, a computer engineer from Obafemi Awolowo University. A crypto enthusiast, marketer, and writer who is seeking to achieve career excellence through hard work and positive contribution to the organization that aspires for excellence. Contact me on [email protected]

Singapore-based Quoine exchange has found itself embroiled in a legal tussle with a familiar customer in popular cryptocurrency market maker, B2C2, in what would represent Singapore’s first ever court case on Bitcoin (BTC).

According to a recent report by a local news outlet, The Straits Times, Singapore’s fresh Bitcoin case would come as a result of a supposed unilateral reversal of cryptocurrency/crypto-fiat transactions by Quoine late last year.

The said incident which occurred last year at a period that saw the explosive rise of Bitcoin and consequently other altcoins would see Quoine allegedly having an inflated figure of ‘Bitcoin-mishandling’ leveled against it. Quoine which rose steadily from its inception in 2015 is headquartered in Japan, with one of its two other major offices located in Singapore.

After being a long time official customer of Quoine, B2C2 has slapped charges against the Japanese exchange for breaking trust and taking expensive decisions related to its firm without consulting them.  B2C2 describes itself as the leading cryptocurrency market maker and a liquidity service provider for Bitcoin, and other major cryptocurrencies such as Ethereum and Litecoin. The London-based firm averred that Quoine reversed BTC to Ethereum (ETH) transactions/trades on seven different occasions, performing a drastic ‘U-turn’ after already making an initial attempt to perform the transactions on each particular case.

B2C2’s accusation against Quoine has the cryptocurrency exchange company guilty of reversing transactions worth a total of almost US $14million in 3,085 BTC.  The liquidity firm’s petition is a move to recover the said total from Quoine, with the plaintiff arguing that Quoine made its drastic measures to escape the financial loss that rose consequently from the concerned trades, by ‘simply reversing the irreversible trades,’ without the market maker knowing.

Quoine in its defense has attributed the incidents to technical glitches and cited the gross penalty that resulted from the liquidity problems which B2C2 allegedly gained from. With the market maker making trades at a staggering 10 BTC to 1 ETH, B2C2 should have no complaints with such consequential high pricing. Quoine contended:

“There is no other way than to describe these orders as abnormally and absurdly priced orders, given that they were about 250 times higher than the average price at which (the two currencies) then traded on the platform.”

The legal tussle is not expected to last long according to reports, with a conclusion expected to be reached by the end of the week.

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