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), Yinchuan City, Xingqing District People’s Court in Ningxia has recently concluded a civil and commercial dispute arising from an entrusted investment in virtual currency. In the case, the plaintiff entrusted funds to the defendant for virtual currency investment. After the plaintiff’s request for the return of the investment principal was not fulfilled, it sued in court on the grounds of “unjust enrichment.” After reviewing the case, the presiding judge found that the matter in fact was a relationship of entrusted contract. The judge explained to both parties the litigation risks and the legal pros and cons, ultimately leading the plaintiff to withdraw its lawsuit against some of the defendants, while the other defendant returned the investment principal. The case was fully resolved through mediation. At the same time, the judge reminded that, according to judicial views of the Supreme People’s Court, entrusted investment contracts signed after September 4, 2017, when the People’s Bank of China and seven other departments issued a risk announcement for virtual currencies, shall be deemed invalid due to the illegality of the agency matters, and investors should carefully assess the relevant legal risks. (Source: Foresight News)