The Singapore-based cryptocurrency exchange Quoine wrongfully reversed these seven transactions on its platform in April 2017 and a loss of 3,092 Bitcoins occurred.
This was the first legal dispute occurring in Singapore that involved cryptocurrency. The apex court has now finally resolved this legal dispute as it found Quoine exchange guilty of breaching in the contract and asked the crypto exchange to pay all the damages to the B2C2 electronic market maker for reversing its seven transactions.
According to a report of The Straits Times, the crypto exchange Quoine appealed to the apex court where it argued that as these transactions were mistakenly reversed, therefore, the exchange could cancel the orders that were placed by B2C2. However, the Court of Appeal did not accept this argument and dismissed this appeal.
While defending the case, the crypto exchange argued that the B2C2 knew about the mistake and appealed to the court that these transactions have been reversed mistakenly not intentionally. These were the basis that the Singapore-based crypto exchange provided to the court in its defense.
In a contract of seven trades, B2C2 was getting 3092 bitcoins in exchange for 309 ETH at an exchange rate of 250 times. This is where the transactions were made reverse by Quoine as a result B2C2 brought the case to the apex court. After this, Quoine exchange appeared before a five-judge panel with its appeal. The appeal of the company was rejected by Judges of Appeal, International Judge, Robert French, and Chief Justice Sundaresh Menon.
According to the court, both B2C2 and Quoine exchange was using complex automated trading systems to execute the trades. The Court of Appeal actually favored B2C2 in this case and ruled for it because according to the court B2C2 did not know about the disorder of Quoine’s programming.
However, now The Court of Appeal is estimating the loss and the damages that Quoine exchange has to pay to B2C2. According to the current price value of Bitcoin, 3092 bitcoins have worth around $28,886,912.