In Brief:
- The plaintiff invested 70,000 yuan (US$10,756) to buy tokens endorsed by three friends in 2017.
The high Supreme court of Shandong province has ruled that crypto is not protected by Chinese law.
According to South China Morning Post, reviewing on case involves potential fraud related to purchasing tokens.
In this case, the plaintiff invested 70,000 yuan (US$10,756) to buy tokens endorsed by three friends in 2017. The ongoing Chinese crypto crackdown resulted in the plaintiff’s account closure by the People’s Bank of China in 2018. This came after the Central bank restated the ban on payment institutions supporting cryptocurrency transactions.
An intermediate court in Shandong’s capital city, Jinan, ruled in January of this year. Jinan city court noted the plaintiff’s fraud allegation was not tenable because the assets didn’t have any legal status. Jinan’s city’s intermediate court upheld the ruling when the plaintiff appealed in march. In reviewing the case, the high court said a statement on Sunday that “investing or trading cryptocurrency isn’t protected by law.”
Authorities outlawed the mining of cryptocurrencies this 2021, triggering a wave of migration by miners from China to central Asia and North America.
Also Read: The People Bank Of China (PBOC) Says Banks Must Block Crypto Transactions
In May, the State Council Financial Stability chaired by Vice-premier Liu He announced “a crackdown on bitcoin mining and trading in the country.”
According to the report, various cases are running in China concerning digital currencies.