TechFlow news, according to the Rule of Law Network, recently the People's Court of Yuanjiang City, Hunan Province ruled on a dispute case arising from trading virtual currency.
In this case, Zhou asked his friend Dai for help purchasing BZZ cryptocurrency as an investment. Acting on Zhou's behalf, Dai bought BZZ cryptocurrency from Zheng and transferred the virtual currency to Zhou's imToken wallet. However, some time later, Zhou filed a lawsuit against Zheng, demanding repayment of 76,518 yuan used to purchase the BZZ cryptocurrency, along with compensation for fund usage.
The court held that civil subjects engaging in civil activities must not violate laws or public order and good customs. BZZ coin is a type of online virtual currency similar to Bitcoin, lacks legal tender status, and should not and cannot circulate as money in the market. Activities related to virtual currencies constitute illegal financial activities. Citizens participating in virtual currency transactions must bear investment risks on their own. The entrusted transactions, management, and resulting refund disputes among Zhou, Zheng, and Dai regarding BZZ coins are currently not protected by law in China. The consequences of such actions shall be borne by the parties themselves. Therefore, Zhou’s claims requesting Zheng to repay 76,518 yuan spent on purchasing BZZ cryptocurrency and pay fund usage fees lacked factual and legal grounds. The court ultimately dismissed Zhou’s lawsuit.
