TechFlow news, the Intermediate People's Court of Wuxi City, Jiangsu Province, China disclosed a rejected investment case involving "virtual US dollars." Platform A advertised a "monthly return of around 7%," claiming users could view their earnings in their platform accounts and withdraw funds at any time. Zhou Ming then entrusted Wang Hao to purchase foreign exchange assets on Platform A and transferred 84,350 yuan to him. On the same day, Wang Hao transferred 13,000 platform US dollars, exchanged for Zhou Ming, into Zhou Ming's platform account. However, Platform A suddenly collapsed, and the 13,000 USD in Zhou Ming's account was shown to be redeemable for only 0.1 CNY. To recover his losses, Zhou Ming filed a lawsuit demanding that Wang Hao return the principal amount of 84,350 yuan and pay corresponding fund occupation fees.
The court ruled that Zhou Ming’s act of entrusting Wang Hao to exchange virtual US dollars on Platform A was an independent investment decision, and there was no entrusted wealth management contract relationship between Zhou Ming and Wang Hao. The financial loss in Zhou Ming’s Platform A account resulted from his own investment activities. In this case, Zhou Ming failed to complete the required registration procedures for investing in an overseas platform as stipulated by regulations. Such investment activities are not protected under Chinese law, and the associated investment risks must be borne solely by Zhou Ming. Therefore, the court dismissed Zhou Ming’s litigation request.
