According to Deep Tide TechFlow news on November 18, the Hunan Xiangyin County People's Court recently tried a case of repaying a loan with virtual currency. The court ruled that virtual currency does not have the same legal status and legal repayment ability as legal currency, thus the borrower's act of using virtual currency to repay the debt 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 determined by the public security authorities to be suspected of virtual currency network pyramid schemes. The court cited the notice issued by the central bank and ten other departments in September 2021 (regarding further prevention and handling of risks related to virtual currency trading speculation) and determined that the repayment behavior violated financial management order.
The court emphasized that any legal person, non-legal person organization, or natural person investing in virtual currency and related derivatives against public order and good customs renders the relevant civil legal acts invalid, and the losses incurred must be borne by themselves. The final judgment in this case states that the debtor still needs to fulfill the repayment obligation in legal currency.
