Guangzhou Court Rules Virtual Currency Loan Contract Invalid, Chang Ordered to Compensate Jin 199,600 Yuan

The Guangzhou Intermediate People's Court in Guangdong Province, China, ruled that the virtual currency loan contract between Chang and Jin is invalid, and Chang must compensate Jin 199,600 yuan. The case originated on July 1, 2023, when Chang borrowed 1 virtual currency from Jin, agreeing to return it by July 3, with repayments adjusted according to market fluctuations. Chang failed to repay on time, leading Jin to sue for the return of the virtual currency and compensation for losses. The court found that the repayment method stipulated in the contract ensured Jin would benefit from the value fluctuations of the virtual currency, effectively constituting a currency exchange, thus rendering the agreement invalid. Since the virtual currency could not be returned, the court upheld Jin's claim for property loss compensation, ordering Chang to pay the equivalent of 199,600 yuan for 1 virtual currency, while dismissing Jin's other claims.

This content is provided for general informational purposes only and doesn't constitute financial, investment, legal, or tax advice. Any events, rewards, online promotions, or related information mentioned herein should not be considered a recommendation, solicitation, or invitation to purchase, sell, trade, or otherwise deal in any crypto assets. Crypto assets are highly volatile and may result in loss. The availability of WEEX services, products, and related events may vary by region. You are responsible for ensuring that your participation is in accordance with applicable local laws and regulations.