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

ME News message, April 1 (UTC+8). The Yinchuan City, Xingqing District People’s Court in Ningxia has recently concluded a civil and commercial dispute arising from an entrusted investment in a virtual currency. In the case, the plaintiff entrusted the defendant with funds for virtual currency investment. After the plaintiff’s request for the return of the investment principal was not fulfilled, the plaintiff filed a lawsuit in court on the grounds of “unjust enrichment.” After reviewing the matter, the presiding judge determined that the actual relationship in this case is one of an entrustment contract, and clarified to both parties the litigation risks and the legal pros and cons. Ultimately, this led the plaintiff to withdraw the lawsuit against some of the defendants, with the remaining defendant returning the investment principal, and the case was successfully resolved through mediation. At the same time, the judge reminded that, according to the judicial opinions of the Supreme People’s Court, an entrusted investment contract signed after the Risk Announcement on Virtual Currencies was issued by the People’s Bank of China and seven other departments on September 4, 2017, would be deemed invalid because the agency matters are unlawful. Investors should carefully assess the related legal risks. (Source: Foresight News)