TechFlow News, on November 19, according to Red Net, the Jiahe County People's Court in Hunan Province recently ruled on a major dispute over an ASIC miner transaction. The case revealed that in November 2021, plaintiff Pan Mouxiang negotiated via WeChat with defendant Lei Moucai to purchase S19XP Bitcoin mining machines, paying 23.678 million USDT. Subsequently, a dispute arose between the two parties regarding the nature of the contract and settlement price. The plaintiff demanded the defendant refund a difference of 6.27 million USDT and continue delivering 149 mining machines.
The court dismissed all of the plaintiff’s claims, primarily for two reasons: First, according to the "Notice on Further Preventing and Dealing with the Risks of Virtual Currency Trading Speculation" issued by the People's Bank of China and other departments, virtual currencies such as USDT do not have legal tender status, and related transactions constitute illegal financial activities. Second, under the National Development and Reform Commission's "Notice on Rectifying Virtual Currency 'Mining' Activities," cryptocurrency mining consumes significant energy, results in high carbon emissions, and contributes little to the economy—thus contradicting the nation’s green development strategy. The court determined that the transaction contract was invalid due to violation of laws, regulations, and public order and good customs, and that any resulting losses shall be borne by both parties themselves.
