Cooperation Mining Farm Equipment Dispute Claim Lawsuit, Hunan Province Court in China ruled virtual currency related contract invalid, losses borne by oneself

By: theblockbeats.news|2025/11/21 15:45:56
0
Share
copy

BlockBeats News, November 21st. Recently, the People's Court of Guiyang County, Hunan Province, China, concluded a virtual currency "mining" contract dispute case. The plaintiff, Mr. Hu, cooperated with others to carry out virtual currency "mining" activities. Later, due to the loss of mining equipment, he sued the court to demand the return of 570,000 yuan in investment. The court ruled to dismiss all of the plaintiff Mr. Hu's claims.

Mr. Hu and Mr. Zhou are friends. A certain technology company was established in May 2021, with Mr. Zhou as one of the shareholders, and Mr. Li and Mr. Peng participating in the company's "mining" business through an affiliate relationship. The two parties agreed to cooperate in "mining." Mr. Hu paid Mr. Zhou 55,000 US dollars through a virtual currency APP (equivalent to 357,082 yuan as agreed by both parties) and entrusted Mr. Cao to transfer 198,000 yuan to Mr. Zhou's bank account, totaling 555,082 yuan, all used to purchase servers, hard drives, and other "mining" equipment, which were hosted and operated by the technology company. In July 2022, the equipment was transferred to Mr. Zhou's kitchen for storage, and thereafter, Mr. Hu only paid the electricity bill to Mr. Zhou. In November 2023, Mr. Li removed some hard drives due to an economic dispute with Mr. Zhou. Although the police station mediated and Mr. Li returned 82 hard drives, Mr. Hu claimed that some hard drives were still missing, and the two parties failed to reach a settlement through negotiation. In 2024, Mr. Hu sued the four defendants on the grounds of equipment loss, demanding the return of 570,000 yuan in investment.

After trial, the court believed that according to the joint announcement of the People's Bank of China and ten other departments titled "Notice on Further Preventing and Disposing of Risks Associated with Virtual Currency Trading Speculation," Article 1 states: Virtual currency does not have the same legal status as fiat currency, does not have legal tender status, and should not and cannot be used as currency circulating in the market. Virtual currency-related business activities constitute illegal financial activities. Participation in virtual currency investment and trading activities carries legal risks. Any legal person, non-legal person organization, or individual investing in virtual currency and related derivatives, contrary to public order and good customs, renders the related civil legal acts invalid, and any resulting losses should be borne by the parties themselves. In this case, the equipment purchased by Mr. Hu for "mining," using virtual currency for payment and settlement management fees, undermines the legal status of fiat currency and violates public order and good customs. The entrusted contract in question should be deemed invalid.

-- Price

--

You may also like

Tiger Research: What AI services do cryptocurrency companies offer?

Cryptocurrency giants like Binance and Coinbase have fully launched an AI defense battle: Driven by FOMO sentiment, leading platforms are accelerating the deep integration of AI agents into core businesses such as trading, security, and payments.

The war not only drives up oil prices but also causes Circle's stock price to soar

High interest rate expectations combined with the explosive growth of stablecoin infrastructure have led to Circle's stock price doubling in five weeks against the trend: Understanding the dual game of "macro interest rate trading" and "global payment foundation" behind the surge in one article.

When agents become consumers, who will rewrite the underlying logic of internet commerce?

Thirty years ago, due to the high cost of micropayments, the internet had no choice but to adopt an advertising model. Today, the technical threshold for micropayments is nearly zero, but trust has become the most expensive luxury. Whoever can bridge this gap will dominate the next generation of int...

AI Agents in Action Summit: March 31, Hong Kong Cyberport, focusing on the deep waters of AI implementation

Tomorrow, Hong Kong Cyberport will grandly open. The "AI Agents in Action" summit gathers top experts, directly addressing the real evolution of AI Agents from conceptual celebration to productization and large-scale commercial implementation.

29 Days In, What Are America’s Options on Iran?

The key is not in ground invasion but in the combination of striking capability and governance.

Flash Crash Down 97%+ with Ongoing Unlocking, WLD Completes $65 Million Off-chain Funding: Who Is Still Buying?

In the current deep bear market environment, being able to complete multi-million dollar token trades is quite rare.

Popular coins

Latest Crypto News

Read more