$17 Million ICX Tokens Claim by DeFi Investor After Finding Coding Flaws in ICON Network

A California judge upheld a cryptocurrency investor’s legal claim in a recent court hearing. A flaw in the code of the ICON distributed network enabled him to gain access to 14 million ICX tokens, which are currently worth approximately US$ 17 million.

After hearing ICON’s application to dismiss the complaint, United States Federal Court Judge William H. Orrick denied the request on August 9th. The lawsuit may proceed because, in Shin’s words, he has “a possible allegation.”

Staker Mark Shin filed a counter-claim against ICON, claiming that the firm had genuinely impeded his ability to exercise his residential or commercial property rights. It was discovered that Shin’s ICX coins had been frozen by the blockchain network, which found a fault in its protocol and discovered its issue.

Shin plausibly asserts that he has a stronger claim to possession of and title to the ICX tokens than ICON because he minted, created, and staked a claim to the ICX tokens on the blockchain.

Judge William H. Orrick

The judge ruled that, while it was debatable whether common law property rights should apply to digital assets, Shin had made a compelling case for his ownership of the tokens.

The vulnerability used a protocol fault that continually gave him 25,000 newly minted ICX tokens each time he launched a redelegation operation (moving staked tokens in between network nodes).

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Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.