SINGAPORE – The Singaporean founder of collapsed cryptocurrency trading platform Torque denied any knowledge of cryptocurrency trading platform Cryptotrage, which was allegedly using Torque’s Binance account to hold and trade investors’ deposits.

Taking the stand during an ongoing trial that is delving into allegations surrounding Cryptotrage, Mr Bernard Ong, 36, vehemently rejected having any liability towards Cryptotrage investor George Baizanis.

The 48-year-old Greek investor is seeking to recover US$9 million (S$12 million) from Singapore fintech firm Snap Innovations and Mr Ong for allegedly breaching a service agreement that he entered into with Snap on May 24, 2019.

The agreement stated that Snap would make good any digital assets stolen by any of its staff within five business days.

The corporate guarantee was apparently signed by a Snap director in Vietnam, Mr Wu Zongyi, also known as Zee, and second defendant Mr Ong, who was listed at the time as the managing director of Snap.

Mr Bazainis told the court that Cryptotrage was run by Snap in Vietnam, and he started placing small investments with the platform in 2018. He increased his investments in 2019 after the corporate guarantee was signed.

On Feb 9, 2021, he discovered that his investments with Cryptotrage had vanished and was told by a Snap Vietnam employee that Zee had gone missing.

Both Mr Ong and Snap deny any knowledge of Cryptotrage. In filings with the court in 2021, Snap said it never had trading operations in Vietnam through Snap Vietnam.

Mr Ong subsequently made a police report against Zee, who also held the position of chief technology officer with Torque, and applied to the courts in the British Virgin Islands, where Torque was incorporated, to wind up the company.

Torque was ordered to be wound up on March 18, 2021.

Mr Baizanis is also suing Mr Ong, as Snap’s managing director, for failing to supervise Zee.

During the cross-examination on Dec 6, Mr Baizanis’ lawyer, Mr David Ong of David Ong & Co, pointed out several withdrawals made by Mr Baizanis on different occasions in relation to Cryptotrage from Torque’s trading account with cryptocurrency exchange Binance.

Mr David Ong also flagged a letter by Torque’s liquidators to investors on the “unauthorised” withdrawals made from Torque’s only Binance account, which were apparently made outside of Torque’s ordinary business, further emphasising that those “unauthorised” withdrawals made by Mr Baizanis were in relation to Cryptotrage.

“I am demonstrating to you that all these withdrawals were the withdrawals made of his (Mr Baizanis’) funds in Cryptotrage because these funds, as far as Snap Vietnam team is concerned, were also in the same Binance account as Torque,” Mr David Ong told Mr Bernard Ong.

He went on to question Mr Bernard Ong on his knowledge of Torque’s Binance account.

Mr Bernard Ong, who faces a separate lawsuit by Torque’s liquidators of allegedly failing in his duty as the director of Torque, said he did not know of Cryptotrage or that the project was using any sub-accounts created under Torque’s Binance account.

In his response to Mr David Ong, Mr Bernard Ong said he found the withdrawals suspicious and there was no evidence that the sub-accounts used by Mr Baizanis under Torque’s main Binance account belonged to Cryptotrage. He added that Mr Baizanis was a Torque user who had made withdrawals from Torque.

“So why is there this project called Cryptotrage using our sub-account? There is nowhere in these documents to prove that these sub-accounts belong to Cryptotrage. What is Cryptotrage? I do not know,” said Mr Bernard Ong, who had also told the court that he is disputing the unauthorised withdrawal claims by Torque’s liquidators.

Mr Bernard Ong, who is represented by Mr Sarbrinder Singh of Sanders Law, also denied having signed any corporate guarantee and being acquainted with Mr Baizanis.

He told the court he had been introduced to Zee by Snap founder Ting Shang Ping.

Mr Bernard Ong was hired by Snap to market products and services for the company. Although he was listed as a director on Snap’s website, he was not a registered director of the company.

Snap, represented by lawyer Christopher de Souza from Lee & Lee, has denied all claims by Mr Baizanis.

The trial is expected to wrap up on Dec 8.