09 Oct 2018 Marina Petkova
Court Ruled that a Cryptocurrency Startup will Reclaim its 530 ETH
The Supreme Court of British Columbia ruled in favor of the cryptocurrency startup, following the dispute with an initial coin offering (ICO) investor that received Ethereum tokens by accident.
On September 12, Justice Ronald A. Skolrood announced the verdict and allowed the blockchain company Copytrack to reclaim its 530 ETH from the investor. He participated in the Initial Coin Offering and was supposed to receive 530 CPY tokens instead of 530 ETH.
The sum was estimated to be around 391,000 dollars, but since then it has declined to about 121,000 dollars. Brian Wall, who is the investor, initially purchased 530 CPY tokens. When the ICO finished, Copytrack issued 530 tokens, but they sent Wall ETH, not CPY.
At first, Brian Wall was unwilling to return the 530 ETH to the Singapore-based company, but after a while, he agreed. However, when he tried to send the money back, Brian realized that a hacker accessed his Ethereum wallet and stole the funds. The legal matter got more complicated because Brian Wall died before the two sides could resolve the issue.
The case got extremely complex and raised a number of legal questions, such as the classification of the Ethereum tokens. Nevertheless, Justice Skolrood maintained his position and ruled that the tokens belong to Copytrack.
Justice Skolrood further explained that Mr. Wall had no proprietary claim to the tokens and they should have been returned to the rightful owner, that is Copytrack. The final order was that Copytrack is entitled to trace down and receive the 529.8273791 Ethereum tokens from whoever is currently holding them.
The legal matter remains unresolved for now as the company is tracking the misplaced 530 ETH from Wall‘s estate or a potential hacker.