According to Foresight News, a court in Nanchang High-tech Industrial Development Zone has rejected a lawsuit involving a loan repayment dispute related to the cryptocurrency Tether (USDT). The plaintiff, identified as Xiaoming, claimed that in April 2021, the defendant, Xiaogang, borrowed money from him to invest in USDT, promising to repay the loan within six months. Xiaoming then exchanged over 550,000 yuan (approximately $86,000) for more than 80,000 USDT and provided the loan to Xiaogang. However, after the agreed-upon time, Xiaogang failed to repay the loan, prompting Xiaoming to file a lawsuit.
The Nanchang High-tech Court ruled that civil cases involving cryptocurrencies should fall within the scope of civil litigation accepted by the People's Court. In this case, Xiaoming failed to prove that the USDT involved was a legally and publicly issued currency, and therefore, it did not have legal compensation. As a result, the lawsuit did not fall within the scope of civil litigation accepted by the People's Court. The first-instance court dismissed Xiaoming's lawsuit, and he subsequently appealed to the second-instance court. In the end, the second-instance court rejected the appeal and upheld the original ruling.
