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15.03.2019

Market Maker Due $11.5 Mln Settlement From Quoine After Guilty Ruling on Reversed Trades

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Electronic market liquidity provider B2C2 has won its case against Singapore cryptocurrency exchange Quoine and could claim now over 3,000 Bitcoin (BTC) ($11.5 million), local English-language daily news outlet Business Times reported on March 14.

The dispute, which saw Singapore’s first cryptocurrency court case begin last November, involves trades made by B2C2 on Quoine’s platform in April 2017.

At the time, Quoine was experiencing what it describes as technical difficulties, which resulted in temporary major liquidity problems.

As such, B2C2 was able to place Bitcoin (BTC) to Ethereum (ETH) trades at a highly artificial exchange rate of 10 BTC per 1 ETH, at the time making 1 ETH worth around $12,000.

Court documents revealed the amount involved as being 3,085 BTC ($11.9 million).

Now, a Singapore judge has ruled that Quoine incorrectly reversed the erroneous trades without seeking B2C2’s permission, opening the door to a settlement which may yet result in a full payout.

Given that Bitcoin’ price is substantially higher than it was in April 2017, however, the two parties must first attempt to find an agreement out of court. Should that fail, the court will decide damages on their behalf.

Following the decision, Quoine’s CEO Mike Kayamori told Business Times:

“We are reviewing the judgement and considering our options, including the possibility of an appeal.”

In November 2017, Quoine raised significant funds during its initial coin offering (ICO), investors buying up 350,000 units of its QASH token, the price of which was pegged to ETH.