Bitcoin Dispute, Singapore’s First, Heads to Trial

Crime, News | December 7, 2017 By:

Singapore’s first cryptocurrency-related legal dispute will soon head for trial at the Singapore International Commercial Court (SICC). The legal dispute is between cryptocurrency liquidity provider B2C2 and Tokyo-based cryptocurrency exchange operator Quoine.

In July, B2C2 sued Quoine for allegedly wrongfully reversing transactions. B2C2 said that on April 19 it paid 309.2518 ethers for 3092.517116 bitcoins, which was credited to its account. However, the following day, Quoine reverse the trades and allegedly misappropriated the proceeds without authorization.

Quoine, on the other hand, cited “technical glitch” as the reason behind the “abnormal rate.” Quoine said that B2C2 is “being opportunistic and seeking to profit from a technical glitch,” adding that a sophisticated investor like B2C2 with experience trading digital currencies should have suspected the abnormal rate to be a mistake.

The transaction was originally paid in the amount of $3.78 million worth of bitcoin. Since the payment, however, the price of bitcoin has swollen past $15,000, bringing the value of the proceeds to over $46 million.

In a summary judgment hearing on Dec. 5, B2C2 sought to recover the bitcoins from Quoine. But SICC International Judge Simon Thorley declined to grant summary judgment and instead directed the case for trial to determine whether B2C2, if it prevails, is entitled to recover the bitcoins itself or the value of the bitcoins, taking into account any increase in value since the alleged breach.