BlockBeats News, March 18th. Recently, the Zhangqiu District Court in Jinan City, Shandong Province, China, revealed a typical case: Liu entrusted his friend Zhang to invest in “Alpha Coin,” with the platform showing daily profits of hundreds of yuan. After the investment, the platform became inaccessible. Zhang was informed that the person in charge of the platform was under investigation for alleged criminal activities. Liu sued, demanding that Zhang return the investment.
The court, after review, concluded that investing in virtual currency disrupts financial order and jeopardizes financial security. Therefore, the entrustment contract in this case is deemed invalid. Zhang did not profit from the entrustment, and the investment loss was a risk of engaging in illegal financial activities, which should be borne by Liu.
The judge reminded that the announcements of the seven departments in 2017 and the notice of the ten departments in 2021 have clearly stated that virtual currency-related businesses are considered illegal financial activities, and investment losses are not protected by law. Even if the operation is conducted through another person, as long as it essentially involves participating in virtual currency transactions, it is likewise not legally protected. (The Paper News)
