Supreme Court of British issued a major ruling in a case where 530 Ethereum coins belonging to Copytrack were sent to the wrong address by mistake. According to evidence presented before the court, the digital coins were sent to an ICO (initial coin offering) investor and the transaction could have serious effects on other cryptocurrency users as well as exchanges outside of the parties involved in the case.
530 Ethereum Coins to be reclaimed
Justice Ronald A.Skolrood ruled that Copytrack, a blockchain startup made a legit mistake to send the Ethereum coins to the wrong recipient and should reclaim all the coins immediately. Notably, Copytrack is a new crypto company based in Singapore and has since its inception gained a massive traction across the globe.
At the time of the court ruling, the digital assets were estimated to be worth approximately $391,000 but due to changes in the market, the value has dropped to around $121,000. Nonetheless, the firm is expected to obey the court directive and make sure that the coins are sent to the right recipient this time round.
Brian Wall, the respondent in this case, is said to have participated in the Copytrack ICO that was hugely publicized and purchased 530 CPY tokens. After the initial coin-offering period, Copytrack seem to have made a mistake and sent 530 Ethereum tokens to Brian Wall instead of CPY tokens. It is also important to note that the current value of one CPY is five cents; this is a fraction of the current ETH value.
Copytrack lawyers told the court that Brian Wall had initially refused to send back the 530 Ethereum coins to Copytrack but he later changed his mind and agreed to do so but not without a condition. It is reported that he said that he could not send back the funds to Copytrack because a hacker managed to access his Ethereum wallet and stole all his digital assets.
In a weird change of events, Brian Wall died a few weeks after agreeing to comply. The case raised a number of legal issues one of them being the true owner of the ether tokens and if the tokens should classified as goods. Justice Skolrood stated that regardless of the classification of the tokens, they belong to Copytrack blockchain startup and should be reclaimed and sent back to the company.
The court order also gave Copytrack the go ahead to recover all the coins regardless of who currently owns them. This is a bit murky since the coins could have being sold by Brian Wall to a legitimate trader who didn’t know that they belonged to Copytrack initially and that Brian received the coins by mistake from the company.
This case sheds light to some of the legal issues that ICOs face and the need for the governments to come up with proper laws to guide the lawyers and courts. Copytrack and other cryptocurrency startups across the globe need to put in place measures to ensure that similar erroneous transactions don’t happen.