Chinese court: Virtual platform runs away, investors bear their own losses
The Donghu People's Court of the Wuhan Donghu New Technology Development Zone People's Court in Hubei Province recently concluded a virtual currency investment entrustment contract dispute case. Because the virtual currency trading platform was frozen, the investor's funds could not be recovered. The court finally ruled to dismiss the plaintiff's lawsuit and the investor should bear the loss.
It is reported that the plaintiff Liu learned that his colleague Wang had connections to invest overseas and promised to guarantee principal and interest. He transferred a total of more than 1.84 million yuan to Wang and his designated third-party account to invest in "Tether USDT". During the period, he only received more than 56,000 yuan in return from Wang. Later, he found that the website for purchasing virtual currency could not be opened. After many attempts, he could not accept the huge losses caused by investing in virtual currency, so he sued the court for a commission contract dispute.
The court believes that according to the "Notice on Further Preventing and Dealing with the Risks of Virtual Currency Trading Speculation", there are legal risks in participating in virtual currency investment and trading activities. Any legal person, non-legal person organization and natural person who invests in virtual currency and related derivatives violates public order and good morals, and the relevant civil legal acts are invalid, and the losses caused by this shall be borne by themselves.
