Singapore’s Court of Appeal has ruled that the cryptocurrency exchange operator Quoine wrongfully reversed a number of trades made on its platform – and is set to order it to pay compensation.
Per the Straits Times, the court refused to accept claims from Quoine's legal team, which said that it was acting in good faith, and believed that seven trade orders placed by the electronic market maker and liquidity provider B2C2 in 2017 had been issued due to a mistake.
The court will now listen to arguments from both sides before deciding on the size of the compensation due to B2C2.
The report’s author wrote,
“Quoine argued that the parties who transacted with B2C2 were under the mistaken belief that the trades were at market price and that B2C2 knew of this mistake.”
The transactions involved to sales, and B2C2 claims that the Quoine move effectively resulted in a four-figure BTC loss.
The court heard that on April 19, 2017, B2C2’s software ordered the seven trades, with BTC 3,092 (today - USD 29 million) credited to B2C2 in exchange for ETH 309 (USD 80,000) debited.
Quoine learned the details of the trades on April 20, when it reversed the transactions.