Chinese Couple Separated due to Bitcoin Trading Dispute
Transaction records are absent after buying bitcoins with help of her boy friend, a college student in China sued her boyfriend for compensation.
Early in last November, the college student named Miss Zhang, bought DC coin worth 10,000 CNY to trade for bitcoins. In February, Miss Zhang paid over 20,000 CNY to buy DC coin according to her boyfriend’s instructions.
In March, Miss Zhang found that the above two transaction records in his account are absent and so she asked his boyfriend Mr. Li whether he bought DC coins for her. Mr. Li said he did not know why there was no transaction record. The couple quarrelled and finally split up.
On June 6th , Miss Zhang sued Mr. Li for compensation of 30,000 CNY and requires for interest.
The court pointed out that virtual currency is not the real currency according to the announcements issued by the Central Bank of China. That is to say, DC coin should be deemed as a specific virtual commodity, which can not and be used as currency in the market. Investing and trading DC coin is illegal and not protected by Chinese law although it is personal freedom.
The court rejected the plaintiff’s claim because the act of entrusting Mr. Li to invest and trade DC coins is not protected by law in China. Though Mr. Li handled Zhang’s account, Miss Zhang paid by herself. Therefore, the entrusting act between Miss Zhang and Mr. Li is invalid, so Miss Zhang herself should take responsibility.
In fact, the trading platform has gone away with over DC coins worth 400,000 CNY Mr. Li Invested over the past few years. In September 2017, seven Chinese government agencies jointly issued an Announcement on Preventing Risks relating to Fundraising through Token Offerings, said authorities are banning all organizations and individuals from raising funds through ICO activities and that all banks and financial institutions should not do any business related to ICO trading.
The servers of those trading platform are in foreign parts. Once investors put money into those trading platform, platform organizers can close the platform and run away with investors’ money at any time.