Quoine exchange sued in Singapore

Singapore cryptocurrency exchange platform sued by the market maker, B2C2
31 July 2017   2241
Bitcoin

Is the first decentralized peer-to-peer payment network that is powered by its users with no central authority or middlemen

One of the world’s major Bitcoin exchange operators, Quoine, gets sued by an electronic market maker, B2C2. As reported, the trades were allegedly wrongfully reversed, which resulted in proceeds being deducted.

According to B2C2, the company placed orders on Quoine’s platform to sell Ethereum for Bitcoin at the price of 10 bitcoins for one Ethereum.

Ethereum

Is an open-source blockchain-based distributed computing platform featuring smart contract functionality, which facilitates online contractual agreements 

On April 19th, the orders were filled in a series of trades resulting in B2C2 paying 309.2518 Ethereum for 3092.517116 Bitcoin. 

However, the next day, the trades were reversed by Quoine and the proceeds allegedly “misappropriated” from the account without authorisation. As Quoine told B2C2, it was entitled to do so because the trades were “mostly trades with huge mark-up over fair global market price”.

B2C2 claims Quoine had “acted fraudulently” because the agreement stated that an order, once filled, is “irreversible”. It is seeking to recover 3084.78582325 Bitcoin from Quoine in the High Court.

10 BTC for 1 ETH is 125 times higher than the average market price. The purchase became possible only due to a system error in Quoine, so the seller suffered losses from such a transaction and canceled it.
 

Quoine team

No dollar value for that amount of Bitcoin was provided in the lawsuit but according to cryptocurrency exchange CoinDesk, that amount translates to US$3.78 million based on an exchange rate of US$1,226.94 for a Bitcoin on April 19. Quoine in turn claims that B2C2 is “being opportunistic and seeking to profit from a technical glitch”

Given the “stark difference between the abnormal rate and the actual market prices of bitcoin and ethereum on April 19”, B2C2, which Quoine called a “sophisticated” investor with experience trading virtual currencies, should have suspected the “abnormal rate” was a mistake. 

However, as B2C2 insists, under the terms of the agreement the deal was not subject to cancellation. Accusing Quoine of intending to cancel the transaction by fraud, the British company appealed to the court.

Bear Market to Hit Mining Hard

BitMEX research division presented an analysis of the impact of market decline on the mining industry
11 December 2018   75

The cryptocurrency market has experienced a marked decline over the past weeks. The BitMEX research division presented an analysis of the impact of these events on the mining industry. Bitcoin hash rate has fallen by 31% since the beginning of November, which is equivalent to the capacity of 1.3 million Bitmain S9 devices. From this, BitMEX concludes that miners as a class are in a difficult situation, however, they may have different conditions, and those who pay more for electricity, are forced to turn off their equipment first, while others may still be quite viable.

The decrease in the price of Bitcoin by 45% since the beginning of November has already caused two recalculations of the complexity of mining to the lower side - by 7.4% and 15.1% on November 16 and December 3, respectively. The first recalculation turned out to be the largest since January 2013, the second - since October 2011.

Bitcoin mining revenue fell from $ 13 million per day in early November to $ 6 million per day in early December. The fall in the size of the miner's encouragement turned out to be even more rapid than the fall in the price of cryptocurrency. This is due to the delay in recalculating the complexity of mining. For the six-day period ending December 3, 21.8% fewer blocks were mined than expected, since the miners left the network before recalculating the difficulty. As a result, in addition to reducing the size of the miners' encouragement in dollar terms, due to lower asset prices, they received 21.8% less bitcoin awards.

One of the popular reasons for the recent decline in the cryptocurrency market is that miners sold bitcoins to cover their costs of hash warsin the Bitcoin Cash network. The monitoring platform Boltzmann recorded an unusually large sale of Bitcoin by the miner on November 12, that is, 3 days before the hard fork of Bitcoin Cash.

BitMEX assumes that the actions of miners over the past weeks could have played a significant role in reducing the market, however, recommends not overestimating their value and reminds that in a bearish trend, prices continue to fall regardless of asset movements and news.