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

ME News message, on April 1 (UTC+8), the People’s Court of Xingqing District in Yinchuan City, Ningxia, has recently concluded a civil and commercial dispute arising from a commissioned investment in virtual currency. In the case, the plaintiff entrusted funds to the defendant for virtual currency investment; when the plaintiff’s request for the return of the investment principal was not fulfilled, the plaintiff sued in court on the grounds of “unjust enrichment.” After reviewing the matter, the presiding judge determined that this case was in fact a commissioned contract relationship, and after explaining to both parties the litigation risks and the legal advantages and disadvantages, ultimately facilitated the plaintiff to withdraw the lawsuit against some of the defendants; the remaining defendant returned the investment principal, and the case was successfully resolved through mediation. At the same time, the judge reminded that, according to the Supreme People’s Court’s judicial opinions, commissioned investment contracts signed after the People’s Bank of China and seven other departments issued a risk announcement for virtual currencies on September 4, 2017, shall be deemed invalid due to the commission matters being unlawful, and investors should carefully assess the relevant legal risks. (Source: Foresight News)