Chinese Virtual Currency Dispute: Court Rules Against Buyer

According to Law.com, the Yuanjiang City People's Court in Hunan Province recently ruled on a dispute arising from the purchase of virtual currency.

In this case, Zhou requested his friend Dai to buy the cryptocurrency BZZ for investment. Dai, acting on Zhou's behalf, purchased BZZ from Zheng and sent it to Zhou's imtoken wallet. However, some time later, Zhou sued Zheng, demanding the return of the 76,518 yuan he had paid for the BZZ and seeking compensation for the funds being used.

The court ruled that all civil activities must comply with the law and public order. BZZ is a network virtual currency similar to Bitcoin and lacks legal tender status. It cannot be used as currency in the market. Virtual currency-related activities constitute illegal financial activities. Citizens participating in virtual currency trading are responsible for their investment risks.

The court deemed the transactions between Zhou, Zheng, and Dai regarding the BZZ, including the commission, management, and subsequent refund, as not legally protected in China. The consequences of these actions must be borne by the parties involved. Therefore, the court dismissed Zhou's claim for the return of 76,518 yuan and compensation for the funds being used, finding no factual or legal basis.