B2C2, an electronic market maker, is suing Quoine, a cryptocurrency exchange operator headquartered in Tokyo, for wrongfully reversing transactions, Strait Times reported.
The lawsuit has been filed in the Singapore High Court.
B2C2 said that on April 19 it paid 309.2518 ether for 3092.517116 bitcoin, which was credited to its account. However, the following day, Quoine reverse the trades and allegedly misappropriated the proceeds without authorization.
The market maker now claims that Quoine had “acted fraudulently” as according to the agreement, an order is “irreversible” once it is filled.
According to trading data available, bitcoin was priced around $1200 (Bitstamp) on April 19, while ether was priced around $50.
Quoine, on the other hand, cited “technical glitch” as the reason behind the “abnormal rate”. It went on to state that B2C2 is “being opportunistic and seeking to profit from a technical glitch”, adding that a sophisticated investor like B2C2 with experience trading virtual currencies, should have suspected the abnormal rate to be a mistake.
B2C2 is now seeking to recover 3084.78582325 bitcoin from Quoine.
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