Ningxia courts mediate virtual currency entrusted investment disputes, with judges indicating that relevant contracts after 2017 may be deemed invalid.

Deep Tide TechFlow news, April 1, according to The Paper, the Yinchuan City Xingqing District People’s Court 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 to invest in virtual currency. When their demand for the return of the investment payment was not met, they sued in court on the grounds of “unjust enrichment.” After reviewing the case, the presiding judge determined that the matter was in fact a relationship governed by an entrusted contract. The judge explained to both parties the litigation risks and the legal pros and cons, ultimately leading the plaintiff to withdraw the lawsuit against some of the defendants. The other defendant then returned the investment principal, and the case was successfully resolved through mediation.

The judge also reminded that, according to the Supreme People’s Court’s judicial viewpoint, an entrusted investment contract signed after the risk announcement regarding virtual currency issued by the People’s Bank of China and seven other departments on September 4, 2017 shall be deemed invalid because the agency matters are illegal. Investors should carefully assess the related legal risks.