Singapore’s first cryptocurrency trial over questionable trading practices began today as the market maker and liquidity provider B2C2 sues cryptocurrency exchange Quoine. The charge? B2C2 maintains that Quoine wrongfully reversed seven trades in April 2017 that lead to proceeds being deducted without B2C2’s authorization.
In the case unraveling in the Singapore International Commercial Court, B2C2 claims that the action taken by the exchange violated the two companies’ agreement terms, and the market maker seeks to recover some 3,085 bitcoins from Quoine. Although none was given, in today’s dollar price that translates into roughly $13 million.
According to Singapore’s Straits Times, in their opening statement, B2C2’s legal team alleged that Quoine had abused its role as the operator of the platform and that it had acted in “breach of trust” as B2C2’s custodian.
While bitcoin prices have since been on a roller coaster ride reaching a meteoric peak of $19,783.21 on December 17 and crashing back down to around $4,500 today, in March of 2017, prices were hovering around the $1,200 mark. This further demonstrates the complexity of the case since the value of the bitcoins in question is significantly higher today than it was at the time of the trade reversal.
B2C2 opened up the case arguing that:
“It is B2C2’s contention that in the face of serious risk of itself having to bear the financial loss arising from the trades… Quoine chose the most advantageous course to mitigate such risk – by simply reversing the ‘irreversible’ trades and deducting the… proceeds from the account…”