Upon inspection of the standard electrode potentials for the half reactions for both $\ce{Cu^2+}$/$\ce{Cu+}$ and $\ce{I2}$/$\ce{2I-}$, it becomes apparent it should be the iodide ions that act as the oxidising agent, as the standard electrode potential for the iodine half-cell is much higher. $$\begin{alignat}{2} \ce{Cu^2+ + e- \;&<=> Cu+}\quad &&E_\text{cell} = +0.159\ \mathrm{V}\\ \ce{I2 + 2e- \;&<=> 2I-}\quad &&E_\text{cell} = +0.54\ \mathrm{V}\\ \end{alignat}$$
To explain this, many websites that I’ve looked at suggest it’s the weak solubility of copper(I) iodide, increasing the $\ce{Cu^2+/Cu+}$ potential to around $+0.88\ \mathrm{V}$.
Such websites include:
- http://www.titrations.info/iodometric-titration-copper
- http://chemistry.tutorvista.com/analytical-chemistry/iodometric-titration.html
What I’d like to know, is how this value of $+0.88\ \mathrm{V}$ has been determined, and a little of the theory behind as to why it has increased from $+0.159\ \mathrm{V}$.