Ningxia court mediates virtual currency entrusted investment dispute; the judge indicates that relevant contracts after 2017 may be deemed invalid

ME News message, on April 1 (UTC+8), the People’s Court of Xingqing District in Yinchuan City, Ningxia, recently concluded a civil and commercial dispute arising from entrusted investment in virtual currency. In the case, the plaintiff entrusted funds to the defendant for investment in virtual currency. After failing to get the investment principal returned, the plaintiff sued the court on the grounds of “unjust enrichment.” After reviewing the case, the presiding judge determined that this case, in substance, was a relationship under a commission contract, and explained to both parties the litigation risks and the legal pros and cons. Ultimately, it led to the plaintiff withdrawing the lawsuit against some of the defendants; the other defendant returned the investment principal, and the case was successfully resolved through mediation. At the same time, the judge reminded that, according to the judicial views of the Supreme People’s Court, a commission investment contract signed after the People’s Bank of China and seven other departments issued a virtual currency risk announcement on September 4, 2017 would be deemed invalid because the agency matters are illegal. Investors should carefully assess the relevant legal risks. (Source: Foresight News)