Mark Shin Minted Millions of ICX Tokens Thanks to a Bug in the ICON Update. Property Rights Trial Has Begun
Due to an error in the ICON blockchain update in 2020, Mark Shin was able to mint 14 million ICX tokens. However, the ICON Foundation decided that Shin had hacked the network and asked Binance and Kraken to freeze the token wallets. Because of this, Shin sued the Foundation.
After some time, on August 9, U.S. District Judge William H. Orrick said the case raises new questions about the digital property. He added that Plaintiff Mark Shin reasonably made claims against the ICON Foundation due to the freezing of his crypto asset accounts.
The judge referred to Law #360, stating that the charges were enough to get the case going. The judge also rejected most of the ICON Foundation’s petitions to dismiss Mark Shin’s claims.
According to the court documents, Shin discovered an error in the ICON network code after a software update in August 2020. After trying to transfer tokens, 25,000 new ICX tokens appeared in his wallet.
Shin thought there was some kind of visual error in the wallet software and repeated the procedure again. In total, thanks to a bug in the ICON update, 14 million new ICX tokens were generated, worth about $7.8 million at the time. Shin transferred many of those tokens to the Kraken and Binance exchanges.
According to the court order, Shin acknowledged that the authors and developers of the software update may not have anticipated such an effect. But he said that he was the owner of the new tokens.
The judge agreed with the plaintiff’s claims about the possible ownership of the tokens, allowing the case to continue, stating that Shin has full ownership of the ICX tokens.
At the time of writing, ICX is trading at $1.12, 91.5% below its all-time high in January 2018 at over $13.