SINGAPORE, Oct 10 — A Singapore High Court judge has awarded a German cryptocurrency executive over US$2.4 million (RM10.3 million) in damages following a two-year legal battle over wrongful dismissal, potentially setting a record for the highest compensation for such claims in Singapore.
Justice Chua Lee Ming ruled on September 23 that the dismissal of Alexander Hoeptner by his former employer, Three Fins, in 2022 was wrongful, as reported by The Straits Times yesterday.
With interest and legal costs factored in, the total damages awarded to Hoeptner exceeded US$2.6 million.
Hoeptner’s lawyer, Suresh Divyanathan, partner and head of international arbitration at Oon & Bazul, indicated that this could be the largest sum awarded for wrongful dismissal in Singapore.
He explained that the substantial payout was tied to Hoeptner’s high salary and his contract, which guaranteed significant compensation if he were terminated without cause before completing two years of employment.
Previously the chief executive of the Stuttgart Stock Exchange in Germany, Hoeptner was brought on to lead HDR Group, which encompasses companies associated with the BitMEX cryptocurrency exchange, including Three Fins.
His appointment came after the co-founders of BitMEX resigned amid regulatory investigations in the United States.
Divyanathan noted that Hoeptner’s contract included a lump sum payment and a bonus of approximately US$2 million, both guaranteed unless he was terminated for cause.
However, the company contended that Hoeptner was dismissed for misconduct, citing his failure to secure approval for relocations and unauthorised expenses charged to the company.
Justice Chua determined that the dismissal process was flawed, as it was executed by the chairman of HDR Group instead of the directors of Three Fins, as specified in Hoeptner’s employment agreement.
The court also highlighted the company’s failure to call crucial witnesses, which raised doubts about the validity of its claims.
Divyanathan emphasised that this case serves as a warning to companies regarding the risks of improperly dismissing employees.
“Since the judge ruled that the decision to terminate Mr Hoeptner for cause was wrong, the defendant had no proper basis to deny Mr Hoeptner the lump sum payment,” he said.
He added, “The damages award was exceptionally large due to the contractually obligated lump sum payment, six months’ salary in lieu of notice, and housing and education allowances.”
In response to the ruling, Hoeptner expressed satisfaction, stating via email, “The High Court’s ruling vindicates my position and restores my professional reputation.”
He is currently the chief executive of digital assets firm AllUnity and is focused on increasing the adoption of digital tokens, including the development of a euro-denominated stablecoin.
Legal experts suggest that while this payout is likely the largest of its kind in Singapore, a definitive conclusion is challenging as not all court decisions are published.
Jason Chua, a former assistant registrar at the Employment Claims Tribunals (ECT) and now a law lecturer at Temasek Polytechnic, noted that the existence of the Tripartite Alliance for Dispute Management (TADM) and ECT diminishes the number of wrongful dismissal cases reaching the courts.
He added that most claims are resolved through mediation before escalating to litigation.
This case underscores the importance of adhering to proper procedures in employment disputes and sets a significant precedent for future claims in Singapore.