Singapore-based blockchain startup, Copytrack avoided a major setback after the Supreme Court of British Columbia ruled in their favor over a lawsuit involving an accidental transfer of 530 Ether tokens [ETH] to an investor.
The incident had occurred following the startup’s ICO when Brian Wall, a cryptocurrency trader, was credited with 530 ETH instead of Copytrack’s token [CPY], which had only a fraction of ETH’s value.
At the time of the incident, 530 ETH was valued at $391,000 but later reduced in value to around $121,000.
Initially, Wall refused to return the tokens but later agreed. However, the matter was further complicated when Wall’s Ethereum wallet was accessed by unidentified hackers, who illegally stole the funds.
While the case was still undergoing, due to undisclosed circumstances, Wall died. This delayed the process of tracking the unlawful transaction, proving as a huge setback to Copytrack.
The court, in its ruling, said that the tokens belonged to Copytrack under any circumstance, even though they are classified as uncensorable transactions. The firm was then given authorization by Justice Skolrood to track and reclaim the ETH tokens.
Justice Skolrood said:
“Further, regardless of the characterization of the Ether Tokens, it is undisputed that they were the property of Copytrack, they were sent to Wall in error, they were not returned when demand was made and Wall has no proprietary claim to them.”
He further added:
“While the evidence of what has happened to the Ether Tokens since is somewhat murky, this does not detract from the point that they should rightfully be returned to Copytrack.”
The case is expected to have implications in the cryptocurrency ecosystem as it will act a pointer as to how cases in the crypto space will be gauged. The ruling also points to some loopholes that can be exploited. The ruling explicitly says that the startup is entitled to the tokens, whoever it may belong to now.
Subscribe to AMBCrypto’s Newsletter
Stellar Lumens [XLM/USD] Technical Analysis: Bulls rest while bears plan siege
XRP/USD Technical Analysis: Market confused amidst a reddish hue
Cardano [ADA/USD] Technical Analysis: Bear is still king of the market
Bitcoin [BTC] rewards start-up raises $2.25 million; Bain Venture Capital one among the investors
Bitcoin [BTC/USD] Technical Analysis: Knife drop urges bears to take power, bulls might see bounce-back
XRP powered-xRapid and Ripple to get push for adoption through upcoming SWIFT GPI upgrade and Temenos?
XRP, Bitcoin [BTC], Ethereum [ETH] and Litecoin [LTC] bull run last year started in November: The outlook 1 year down the line
Ripple partner reveals platform moves “a couple billion”, hints at usage of XRP-powered xRapid in future
Bitcoin ETF fate to be decided by the SEC after November 5
“Bitcoin [BTC] will be made better than every other cryptocurrency”, says nChain’s Craig Wright
Ripple’s new xCurrent 4.0 with over 150 customers promises “increased product interoperability” with XRP-powered xRapid
IMF Official to Ripple Co-founder – IMF involved in research, publication on crypto-assets and blockchain
XRP breaks out above 4% within the span of an hour; new APIs enabled
XRP is “explicitly legalized and endorsed” in Thailand, reveals Ripple’s Garlinghouse