The first legal trial involving bitcoin is due to take place in Singapore at the Singapore International Commercial Court (SICC).
In May, electronic market maker B2C2 is reported to have sued bitcoin exchange operator Quoine over the issue of trades that were allegedly wrongfully reversed, The Strait Times writes. Earlier this week, a summary judgement was heard by SICC International judge Simon Thorley with B2C2 seeking to recover 3,084.78582325 bitcoins from Quoine. The electronic market marker alleges that the bitcoin exchange operator’s breach of trust ‘deprived it of the opportunity to sell the proceeds on the date of their highest intermediate value.’
However, Thorley declined to grant summary judgement, directing the case for trial. This will determine whether B2C2 can either recover the bitcoins requested or the value of the coins taking into account any increase since the trade order took place.
On the 19th April, B2C2 is reported to have placed orders on Quoine’s exchange to sell ethereum for bitcoin at a price of 10 bitcoin for one ethereum. This resulted in B2C2 paying 309.2518 ethereum for 3,092.517116 bitcoins. The digital currency was then credited to B2C2 the same day. Yet, Quoine has been accused of reversing the proceeds the following day. The exchange is reported to have said to B2C2 that it was allowed to do so due to the fact that the trades were ‘mostly trades with huge mark-up over fair global market price.’ Apparently, Quoine are claiming that the average market price that day was only about 0.03929075 bitcoin for one ethereum.
B2C2 are arguing that the digital currency exchange operator ‘acted fraudulently’ because the agreement stated that an order was ‘irreversible’ once completed. According to Quoine, B2C2 is ‘being opportunistic and seeking to profit from a technical glitch.’ B2C2 is seeking equitable compensation ‘based on the highest intermediate value of the proceeds in U.S. dollars between the date of the breach and the date of the judgment.’
At the time of the trade proceeds, the total amount of bitcoin against the U.S. dollar was valued at $3.78 million. Since then, though, the digital currency has seen its price sky rocket in recent months due to increased investor interest and favourable market events on Wall Street. As a result, the cryptocurrency’s wild ride saw its value increasing to an impressive $17,203 in the early hours of Friday. Based on this figure, the trade proceeds would have swelled to over $53 million.