TechFlow news — Nanchang High-tech Zone Court ruled in a case involving the lending of virtual currency and subsequent demand for repayment that the matter does not fall within the scope of civil litigation. The plaintiff, Xiao Ming (a pseudonym), claimed that in April 2021, the defendant Xiao Gang (a pseudonym) borrowed funds from him for the purpose of trading USDT, promising to repay the loan within six months. Xiao Ming then converted over 550,000 RMB into more than 80,000 USDT coins and provided them as a loan to Xiao Gang. However, after the agreed period expired, Xiao Gang failed to repay the loan, prompting Xiao Ming to file a lawsuit. The first-instance court ruled to dismiss Xiao Ming's lawsuit. Dissatisfied with the ruling, Xiao Ming appealed to the second-instance court. Ultimately, the second-instance court dismissed the appeal and upheld the original ruling.
The court held that at the time of filing the lawsuit, the plaintiff Xiao Ming failed to prove that the USDT involved in the case is not a legally issued currency and therefore lacks legal tender status.
