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
Ethereum [ETH] Constantinople hard fork could take place in the next 2 to 6 weeks
Tron [TRX] Technical Analysis: Coin falls into the bear trap
Bitcoin [BTC] mining pool dominance dwindles and shifts to unknown miners
Cryptopia hack: Case involving Ethereum-based tokens takes a new turn in the market
Grin [GRIN]’s great fall: The new privacy-oriented coin plummets by 97% within a day
Bitcoin [BTC]: A piggybacking Proof-of-Proof blockchain has almost 20% of Bitcoin’s daily transactions
Ripple’s xRapid customer SendFriend will go live by Q1 in 2019, says CEO David Lighton
Venezuelan government decrees crypto operators to pay taxes in cryptocurrency
Bitcoin SV [BSV] emerges as top gainer with 11% growth; Tron [TRX] continues massive fall
XRP reaches Australia as FlashFX adopts Ripple’s cryptocurrency
Stolen Ethereum-based tokens transferred to Binance and other top exchanges
Cryptocurrency trading platforms will be inspected by Bulgarian National Revenue Agency
- Press Release
LIQNET – liquidity focused cryptocurrency exchange
Bitcoin [BTC] block halving is 66% complete; next block halving in 495 days