ChainCatcher news, reported by China Court Network, the People's Court of Xiangyin County, Hunan Province recently heard a case involving the repayment of a loan with virtual currency. The court determined that virtual currency does not have the same legal status and legal compensability as legal tender, and the borrower's use of virtual currency to settle debts is invalid.
The case shows that the debtor, Wang, used virtual currency to repay a debt of 20,000 yuan through the 'TR Foreign Currency Platform', which was later identified by public security authorities as suspected of virtual currency network pyramid selling. The court cited a notification issued by the central bank and ten other departments in September 2021 (regarding further prevention and handling of risks associated with virtual currency trading speculation), determining that this repayment behavior violated financial management order.
The court emphasized that any legal person, non-legal person organization, and natural person investing in virtual currency and related derivatives against public order and good customs will render the relevant civil legal acts invalid, and any resulting losses must be borne by themselves. The final judgment of this case requires the debtor to fulfill the repayment obligation with legal tender.