California Court Denies Mark Shin’s Request for 90-Day Discovery Extension in ICON Foundation Lawsuit Over 13 Million ICX Tokens

On Tuesday, February 20, 2024, the United States District Court for the Northern District of California issued an order in the ongoing lawsuit between Mark Shin and ICON Foundation resolving several discovery disputes and scheduling matters.

The civil case stems from an incident in early 2020 where Shin discovered a software bug in ICON’s system that allowed him to generate over 13 million ICX tokens worth approximately $9 million at the time. ICON took action to freeze Shin’s assets, claiming the tokens were generated in error. Shin sued ICON seeking the return of the frozen funds, while ICON countersued and also pursued a criminal investigation that led to Shin facing theft charges in Colorado.

After over three years of litigation, the latest order from Judge William Orrick addressed a few outstanding issues. Shin had asked for a 90-day extension to the discovery period, citing his counsel’s recent involvement and the complexity of the case. However, Judge Orrick denied this request, noting Shin had already received multiple scheduling extensions over the case’s three-year lifespan and failed to show what new information might be uncovered.

The order did grant Shin limited ability to conduct additional discovery. Notably, Judge Orrick ruled Shin may take a seven-hour deposition of ICON pursuant to Rule 30(b)(6) to better understand ICON’s knowledge and position on key issues like how it handled Shin versus other individuals who received bug-generated tokens. The order also required ICON to supplement one of its prior discovery responses with additional blockchain transaction log data.

In addition, Judge Orrick reconsidered but ultimately maintained his prior appointment of receivership over the disputed ICX tokens should Shin’s criminal case be resolved in his favor. While charges against Shin have since been dismissed in Colorado, the judge found this did not change the need to ensure the proper party controls the assets pending the civil suit’s outcome.

The order aims to resolve lingering discovery disputes while moving the complex crypto ownership case closer to trial.

Please contact BlockTribune for access to a copy of this filing.