The Supreme Court of British Columbia has recently issued a major ruling in a dispute case over ethereum (ETH) tokens mistakenly sent to an initial coin offering (ICO) investor, as the case might have implications to affect cryptocurrency users or exchanges outside of the litigants involved in the case.
In the details, judge Ronald A. Skolrood, issued on Sep. 12, a ruling that authorized Singapore-based blockchain startup Copytrack to track down and reclaim approximately 530 ETH, as it had mistakenly sent to an investor who participated in an initial coin offering the company ran.
The 530 ETH were valued at around $391,000 (CAD$495,000) at the time, while they have declined in value to around $121,000 since then.
At closing the ICO, Copytrack sent Wall 530 tokens as ETH rather than CPY, which is worth a fraction of ETH, being valued of about five cents only.
Case-Complicating Death Precedes the Verdict
Wall, who refused first to return the 530 ETH to Copytrack, claimed upon his agreement, that a hacker gained access to his wallet and stole the funds.
Wall passed away after that, which complicated the case more in front of the court.
In his turn, judge Skolrood nevertheless stressed that the crux of the matter stays the tokens that belong to Copytrack.
“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. 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.”, said judge Skolrood, who Consequently issued the following ruling:
“An order that Copytrack be entitled to trace and recover the 529.8273791 Ether Tokens received by Wall from Copytrack on 15 February 2018 in whatsoever hands those Ether Tokens may currently be held.”