Singapore’s First Bitcoin Trial Results In Guilty Verdict And $11.5 Million Settlement From Quoine Exchange
In many court cases involving crypto exchanges, most of the interactions involve the tokens that need to be returned to their owners, or that an exchange was actually a scam. In the case of Quoine, the situation was much different. After starting a court case against Quoine in November, digital market liquidity provider B2C2 has won a lawsuit that they pursued after the exchange over reversed bitcoin trades in April 2017.
The lawsuit was originally filed with the Singapore High Court, aiming to take back the 3,084 Bitcoins from the exchange. According to the original filings, B2C2 had originally sold 309 ETH for 3,092 BTC, which gave them a $3.7 million profit. At the time, Bitcoin was priced around $1200, and had a value of 25x what ETH was worth. However, Quoine chose to reverse the trades the following day, considering that the price was a “huge mark-up over fair global market price.” Calling it a “technical glitch,” B2C2 believed that the decision to sue the exchange was an overreaction.
The story from B2C2 is much different since they believed that Quoine “misappropriated” the funds without their authorization and that the user agreement would categorize the actions as “fraudulent.” B2C2 further stated that Quoine didn’t have the right to cancel the trades after they were performed. After much debate on the case that has lasted well over a year, the courts ultimately decided that Quoine was guilty of the accusations that B2C2 stated.
Even though Quoine was found guilty, the court chose not to order the exchange to return the funds to B2C2, since the price is “substantially higher” than what BTC was worth when the transactions took place. As of press time, Bitcoin is worth $3931.74. That does not mean that B2C2 will end up with nothing in this case; if any damages are assessed, it will happen at a “subsequent hearing.”
This event is a milestone for the courts in Singapore, considering that they have never made judgments regarding cryptocurrencies. Quoine does not look like they plan to take the verdict as it is, considering the remarks from CEO Mike Kayamori, who said that the exchange is considering an appeal.