According to Foresight News, a court in Nanchang, China, has ruled that a case involving a loan of virtual currency USDT does not fall within the scope of civil litigation. The plaintiff, identified as Xiaoming (pseudonym), claimed that in April 2021, the defendant, Xiaogang (pseudonym), borrowed money from him to trade 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 lent it to Xiaogang. However, after the agreed-upon time, Xiaogang failed to repay the loan, prompting Xiaoming to file a lawsuit. The court rejected Xiaoming's claim in the first instance, and he appealed to a higher court. Ultimately, the appellate court upheld the original ruling, dismissing the appeal.

The court found that Xiaoming failed to prove that the USDT involved in the case was a legally issued currency, and therefore, it did not have legal compensation characteristics.