Quoine exchange sued in Singapore

Singapore cryptocurrency exchange platform sued by the market maker, B2C2
31 July 2017   1535
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.

'Kodak Miner' Turned Out to be a Scam

KashMiner by Spotlite USA was promoted as Kodak branded bitcoin miner 
17 July 2018   116

The KashMiner bitcoin miner, exhibited at the Kodak stand during the CES technology show in Las Vegas, was in fact a product designed to mislead potential consumers and with a potentially unattainable potential return. This is reported by BBC.

Spotlite USA is licensed by Kodak's lighting division, which allows it to use the famous brand in its products. In January 2018 the company introduced its miner and announced that it intends to lease it. According to its business plan, potential users had to pay a commission before getting the device. It was expected that after depositing $ 3,400, the customer will receive a device that will allow him to easily cover expenses and receive revenue from bitcoin mining.

However the company did not have an official Kodak license to use the brand in the production of mining equipment and initially overstated the indicators of the potential profit of its device, refusing to take into account the growing complexity and costs of bitcoin mining. The advertising materials reported that KashMiner brings $ 375 a month, which, subject to a 2-year contract, would allow the client to receive $ 5,600 of profit after paying a commission. Experts from the industry of cryptocurrency call this offer a scam.

There is no way your magical Kodak miner will make the same $375 every month.
 

Saifedean Ammous

Economist

CEO Spotlite USA Halston Mikail previously reported that he plans to install hundreds of miners at the headquarters of Kodak. According to him, he already managed to place 80 miners there, but the Kodak spokesman denied this information.

While you saw units at CES from our licensee Spotlite, the KashMiner is not a Kodak brand licensed product. Units were not installed at our headquarters.
 

Kodak Spokesman

In a phone call with the BBC, Spotlite's Halston Mikail said the US Securities and Exchange Commission (SEC) had prevented the scheme from going ahead.