A virtual currency platform ran away, causing investors' millions of assets to be wiped out. The court ruled that it should bear the losses on its own

Recently, the People's Court of Wuhan, Hubei Province, concluded a case of virtual currency investment entrustment contract dispute. Because the virtual currency trading platform was frozen, the investor's funds could not be recovered. The court finally ruled to dismiss the plaintiff's lawsuit and the investor should bear the loss. In 2020, Liu began to try to invest in virtual currency. After learning that his colleague Wang had connections to invest overseas and promised to guarantee principal and interest, based on his trust in Wang, Liu transferred a total of more than 1.84 million yuan to Wang and his designated third-party account through Alipay, bank cards, cash and other methods from December 2020 to October 2022 to invest in "Tether USDT". During this period, he only received more than 56,000 yuan in return from Wang. After a transaction, Liu found that the website for purchasing the virtual currency could not be opened. After many attempts, he could not accept the huge losses caused by investing in virtual currency, so he sued the court for entrustment contract disputes. The court held that the funds between the two parties could constitute relationship funds under the entrustment contract. According to the "Notice on Further Preventing and Dealing with the Risks of Virtual Currency Trading Speculation", there are legal risks in participating in virtual currency investment and trading activities. Any legal person, non-legal person organization or natural person who invests in virtual currency and related derivatives and violates public order and good morals shall have the relevant civil legal acts invalid, and the losses caused by this shall be borne by themselves. As a person with full civil capacity, Liu should be aware of the legal risks of virtual currency transactions in my country. The losses caused by his virtual currency transactions through Wang should be borne by himself, so the court finally ruled to dismiss the plaintiff Liu's lawsuit. (China Court Network)