Altcoins Talks - Cryptocurrency Forum
Learning & News => News related to Crypto => Topic started by: Leonardo on November 23, 2018, 02:16:22 PM
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Japan-based crypto exchange operator Quoine has been taken to court by UK electronic market maker B2C2 over seven reversed Bitcoin (BTC) trading orders, as per a Straits Times report on Wednesday.
The lawsuit is in its final stage, with B2C2 reaffirming in a hearing this week that it is seeking 3,085 BTC and Quoine claiming a technical glitch allowed the seven trades to happen at an exorbitantly higher price rate. The legal battle is being fought at the Singapore International Commercial Court (SICC), which handles cross-border business disputes.
On April 19, 2017, Quoine experienced significant technical issues that caused problems in the real-time data pricing software, according to the SICC summary. The program ceased working in the evening, and the company dropped all trading orders on its exchange. The platform also made login changes to clients’ accounts, but due to the need for external approval, Quoine did not implement the changes immediately. That adjournment allowed B2C2 to place seven orders for exchanging around 309 Ethereum (ETH) tokens for 3,085 BTC, using a rate of 10 BTC for 1 ETH. With the data pricing software halted, the exchange was unable to check external prices, and the system accepted the trades at the B2C2 rate. Quoine then reversed the trades and deducted the proceeds.
The disputed Bitcoins are worth about $13.5 million at current prices.
“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,” Quoine’s legal representative explained in the court hearing on Tuesday.
According to Maxime Boonen, co-founder of B2C2, the exchange reversed the trades illegally as it should seek prior approval before any reversal or deduction related to custody accounts. B2C2’s contracts allow crypto trading platforms to take unilateral action when market abuse concerns arise, but similar clauses are not part of the deal with Quoine.
In December, a SICC judge dismissed B2C2’s application for a summary ruling, saying that Quoine’s terms of use allowed the exchange to cancel transactions on “aberrant values” and “the transactions in question could be void because of a unilateral mistake at common law.”
The court will hold the final hearing next week.
Source: https://cryptovest.com/news/crypto-exchange-operator-quoine-fights-legal-battle-over-reversed-bitcoin-btc-trades/