In the first Singaporean legal dispute that involved BTC, the Singapore registered Cryptocurrency exchange named Quoine has been found to have mistakenly reversed the seven trades that have been placed by the market maker B2C2 during the month of April 2017 and the ruling has been made after the four months of proceedings. The Singapore International Commercial court has found out that Quoine is liable for the breach of contract and the breach of trust for the unilaterally reversing orders that has been placed nearly two years ago by the UK based market maker B2C2.
On 19th of April 2017, the B2C2 placed 12,617 ETH/BTC orders only 15 of which were filed including the seven orders that have been made subject of the dispute with Quoine. The disputed trades comprised orders to sell 309.25 ETH for BTC between 9.99999 BTC and 10 BTC each. Having the exception of the disputed trades, all the other orders were executed at a price of approximately 0.04 BTC per ETH. On 20th of April 2017 the trades were reversed forcing B2C2 to take the legal action against Quoine. The trial has sought the recovery of roughly 3,085 BTC.
On the other hand, Quoine argues that the trades that were executed by B2C2 were the result of a technical glitch. According to the Singaporean Supreme Court, Quoine claimed that post 23:30:00 on 19th of April 2017, B2C2 platform experienced a ‘technical glitch’ that caused the quoter program to stop working and as such all the orders on ETH / BTC stopped to be available and also no true market price was available. In between 23:52:52 and 23:54:33 on the 19th of April 2017 while the quoter program malfunctioned, B2C2 placed the seven disputed trades that are priced approximately 250 times higher than the then-average price of ETH.