The Beijing court declared the Bitcoin mining contract invalid and rejected the plaintiff’s petition for the defendant to pay compensation of 278 BTC, follows from judgment…
In May 2019, Fengfu Jiuxin Company signed an agreement with Zhongyan Zhichuang Company to mine cryptocurrency. The latter undertook to buy, install and operate the equipment, and Fengfu transferred 10 million yuan (~ $ 1.56 million) to her under the contract.
In pursuance of the agreement, Zhongyan transferred 18.3463 BTC (~ $ 901,760) to the companies as cryptocurrency mining income, but then stopped payments.
Fengfu filed a lawsuit, demanding to order the defendant to pay 278.1654976 BTC (~ $ 13.67 million). This amount includes lost income and compensation for equipment.
The judge said that mining consumes a lot of electricity and leads to an increase in carbon emissions – this does not contribute to the development of the real economy and is contrary to China’s environmental goals. Also, in his opinion, the companies knew at the conclusion of the contract that the relevant departments “clearly prohibited” transactions related to bitcoin.
In the decision, the judge ruled that the agreement was contrary to the public interest and illegal, the provisions of which were not subject to legal protection.
Recall that in September, the People’s Bank of China, together with nine state institutions, published a statement in which it attributed operations with cryptocurrencies to illegal financial activities.
The media reported that relevant departments have begun to study the possibilities of criminal prosecution of miners and traders.
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The Beijing court declared the Bitcoin mining contract invalid and rejected the plaintiff’s petition for the defendant to pay compensation of 278 BTC, follows from judgment…
In May 2019, Fengfu Jiuxin Company signed an agreement with Zhongyan Zhichuang Company to mine cryptocurrency. The latter undertook to buy, install and operate the equipment, and Fengfu transferred 10 million yuan (~ $ 1.56 million) to her under the contract.
In pursuance of the agreement, Zhongyan transferred 18.3463 BTC (~ $ 901,760) to the companies as cryptocurrency mining income, but then stopped payments.
Fengfu filed a lawsuit, demanding to order the defendant to pay 278.1654976 BTC (~ $ 13.67 million). This amount includes lost income and compensation for equipment.
The judge said that mining consumes a lot of electricity and leads to an increase in carbon emissions – this does not contribute to the development of the real economy and is contrary to China’s environmental goals. Also, in his opinion, the companies knew at the conclusion of the contract that the relevant departments “clearly prohibited” transactions related to bitcoin.
In the decision, the judge ruled that the agreement was contrary to the public interest and illegal, the provisions of which were not subject to legal protection.
Recall that in September, the People’s Bank of China, together with nine state institutions, published a statement in which it attributed operations with cryptocurrencies to illegal financial activities.
The media reported that relevant departments have begun to study the possibilities of criminal prosecution of miners and traders.
Subscribe to Cryplogger news on Telegram: Cryplogger Feed – the entire news feed, Cryplogger – the most important news, infographics and opinions.
Found a mistake in the text? Select it and press CTRL + ENTER
