BlockBeats News, February 13 — The People’s Court of Jing’an District, Shanghai, China, recently heard a case involving an improper profit-taking dispute caused by virtual currency investment. Ms. Wu was persuaded by a live stream host to invest 1.05 million yuan in virtual currency trading. After being unable to withdraw funds from the platform, she filed a lawsuit seeking compensation. However, her claims were dismissed in both the first and second trials, and she was ultimately responsible for bearing all losses herself. This final judgment serves as a warning to all investors who indulge in wishful thinking and blindly engage in virtual currency speculation.
In November 2019, Ms. Wu received a sales call and, under the guidance of a live stream investment host, downloaded a virtual currency trading app. Through this platform, Ms. Wu made successive investments totaling 1.05 million yuan, reaching agreements with eight sellers, including a transaction of 80,000 yuan with Mr. He. Later, Ms. Wu discovered that she could not log into the trading app, and the virtual currency worth 1.05 million yuan in her account on the platform could not be withdrawn.
In 2024, Ms. Wu reported the incident to the local public security authorities and filed a civil lawsuit in court, claiming that Mr. He should return the 80,000 yuan transaction amount on the grounds of improper profit. Mr. He argued that he was a member of a certain digital trading platform, was selling USDT digital currency through order placement, had not registered an account on the platform Ms. Wu referred to, and that the transaction was completed after the funds were received, so there was no improper profit.
After review, the Shanghai Jing’an District People’s Court held that, according to the relevant provisions of the Civil Code of the People’s Republic of China, civil subjects engaging in civil activities must not violate laws or violate public order and good morals. In this case, the USDT involved is a virtual currency, which does not have the same legal status as legal tender. Activities related to virtual currency are considered illegal financial activities. Ms. Wu’s investment transactions involve virtual currency-related business activities, and trading virtual currency disrupts the national financial regulatory order, violating public order and good morals, and constitutes an invalid civil legal act. The losses arising from this should be borne by her alone. In conclusion, the Jing’an District People’s Court dismissed all claims filed by plaintiff Ms. Wu. Dissatisfied with the judgment, Ms. Wu appealed. After review, the second-instance court dismissed the appeal and upheld the original ruling.
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
U.S. Treasury Urges Law Allowing Crypto Exchanges to Freeze Funds
U.S. Department of the Treasury proposed a law allowing exchanges to freeze suspicious crypto funds during probes.
The report says a “hold law” would let platforms pause transfers without a court order while law enforcement investigates.
Treasury also urged clearer AML rules for DeFi
CryptoFrontNews1h ago
Justin Sun Reaffirms Zero-Tolerance Policy on Illegal Activities at Tron
TRON founder Justin Sun says his companies maintains zero tolerance against illegal activities like embezzlement, unauthorised computer access and bribery.
He threatened legal action against those who spread false rumors online and ‘smear judicial organs’ just days after two of his companies
CryptoNewsFlash4h ago
Anthropic sues the U.S. government, demanding the removal of the blacklist and the reinstatement of federal contracts
Gate News Report, March 9 — Litigation documents show that Anthropic has requested the court to issue an order to revoke the U.S. Department of Defense's blacklisting of the company and to restore federal contracts. Previously, Anthropic was listed as a "supply chain risk" company for refusing to remove safety barriers. In the lawsuit, Anthropic argues that the First Amendment of the U.S. Constitution protects its right to set ethical boundaries for its technology without retaliation.
GateNews4h ago
US Treasury Turns to AI to Combat Crypto Fraud After $9B in Losses
The United States Treasury plans to utilize artificial intelligence technology.
Blockchain analytics in the fight against cryptocurrency-related fraud after the total loss exceeded $9 billion.
The officials are of the opinion that the technology can help identify fraud patterns at an early
TheNewsCrypto5h ago
Korea FIU plans to impose a six-month partial suspension on a certain CEX
Gate News Announcement: On March 9, the Financial Intelligence Unit (FIU) of South Korea issued a preliminary notice to a certain CEX for suspected violations of the "Specific Financial Transaction Information Act," engaging in transactions with unreported overseas virtual asset service providers, and inadequate KYC procedures. The exchange has been temporarily suspended for "6 months with partial operation." Responsible personnel will be held accountable. This restriction mainly affects the virtual asset withdrawal function for new users. Existing users' KRW and crypto asset deposits, withdrawals, and trading are temporarily unaffected.
GateNews8h ago
Suspended deposits and withdrawals, sued by customers! Cryptocurrency trading company BlockFills seeks restructuring
Cryptocurrency company BlockFills has suspended customer deposits and withdrawals due to worsening market conditions and legal disputes. They are currently evaluating a debt restructuring plan and have hired consultants to assist. Facing allegations from Dominion Capital and a temporary court injunction, BlockFills is seeking restructuring and improvements to its financial and governance mechanisms.
区块客8h ago
