Nantong Court heard a case of converting virtual currency investment funds into loans and rejected the plaintiff's lawsuit

Odaily Planet Daily News: The People's Court of Tongzhou District, Nantong City, Jiangsu Province, heard a case of converting virtual currency investment funds into loans, and finally rejected the plaintiff's request for repayment. Han and Ji are friends. Ji told Han that investing in a virtual currency called Tether is very profitable. He only needs to use 15,000 yuan to buy 2,000 Tethers on a certain platform, and he can quickly make more than 100,000 yuan. Ji used Han's mobile phone to help him buy 2,000 Tethers on a certain platform, and said that he could help Han to manage it, so he transferred the 2,000 Tethers to his own account. When the day came for the income, Ji was slow to fulfill his promise. Because he couldn't even get the principal, Han called the police. Afterwards, Han and Ji reached an agreement to convert the previous virtual currency transaction relationship into a loan relationship. Ji issued a promissory note for 15,000 yuan to Han and promised to repay Han. After that, Ji still did not repay the money, so Han sued Ji to the court. In this case, Han claimed that in the loan between him and Ji, he delivered Tether to Ji through an investment platform, and used this as the basis for the loan delivery. However, Tether is not a legal tender, has no legal compensation, and cannot be circulated and used as currency in the market, so it cannot be regarded as Han has fulfilled the obligation to deliver the loan in the loan agreement. Therefore, the loan agreement between the two parties is not established. Han's claim for repayment from Ji based on the loan agreement has no factual and legal basis. Even if, as Han said, Ji induced Han to invest in the purchase of the funds involved and transferred the purchased Tether to Ji's account for his custody, the two parties formed a virtual currency transaction relationship and converted it into a loan relationship after settlement between the two parties, but based on Han's negative evaluation that the law does not protect the funds handed over to Ji for speculation in virtual currency and the related property rights and interests, the People's Court will not protect it, and the losses incurred should be borne by Han himself. The court ruled to dismiss the plaintiff Han's lawsuit in accordance with the law. (China Court Network)