Recently, we encountered a client who invested in virtual currencies, let’s call him A, who suffered a loss in an over-the-counter transaction. This situation is not unfamiliar to many cryptocurrency investors. A’s case is particularly unique, so let’s analyze it in detail.
01 Case Overview
A and an acquaintance, whom we call B, trade virtual currency (specifically USDT Tether, referred to as "U"). The transaction process is: A first transfers money to B, which is equivalent to placing an order; after receiving the money, B purchases U and transfers it to A to complete the transaction.
However, after A paid B, B did not transfer U to A on time. B claimed that his account was frozen and could not transfer money, and this situation lasted for two months. Finally, A chose to call the police and submitted detailed chat and transfer records. The police accepted the case, but eventually told A that it was a civil case and did not constitute criminal fraud.
02 Currency-related disputes: criminal or civil?
Whether A's case is a criminal fraud case or a civil dispute depends on several factors. First, the public security organs in many places do not recognize the property attributes of virtual currency. Second, if B did try to buy U and his account was indeed frozen, and there was no subsequent fraud, then this case may not be considered criminal fraud.
However, if the public security organs in the place where the case occurred recognize the property attributes of virtual currency, or B has the purpose of possession after receiving the money, then this may be a criminal case. But this needs to be judged according to the specific circumstances and the legal provisions of the region.
03 Lawyer’s Advice
For such cases, if the criminal route cannot be resolved, we recommend trying civil litigation. Although courts in different regions have different views on virtual currency transactions, civil proceedings are still an effective way to resolve such disputes.
For example, A may recover the money it paid to B through civil action, especially if there is sufficient
In the event that there is sufficient evidence that Party B has failed to perform its contractual obligations, Party A may also seek compensation for losses caused by delay or cancellation of the transaction.
The complexity of virtual currency transactions is still in the legal development stage, so when conducting such transactions, it is recommended that both parties sign a clear agreement and ensure that it is conducted through a reliable trading platform. In addition, a full risk assessment should be conducted before the transaction and potential legal consequences should be considered.
Finally, we remind all virtual currency investors that whether it is criminal or civil, protecting your property security is always the most important thing. In transactions involving funds, you should always be vigilant and seek professional legal advice when necessary. Remember that the anonymity and uncertainty of the virtual currency market make it a high-risk investment area. Be sure to be fully prepared and research before trading.
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