A Shandong court adjudicated a case involving losses from entrusted investment in virtual currency, ruling that the plaintiff should bear the losses himself/herself.
PANews reported on March 18th that, according to The Paper, the Zhangqiu District Court in Jinan City, Shandong Province, recently disclosed a typical case: Liu, through a friend Zhang, entrusted Zhang to invest in Elfcoin. According to his mobile platform, the investment yielded several hundred yuan per day. However, shortly after the investment, before the agreed investment period expired, the platform became inaccessible. Liu attempted to get his investment back through Zhang, but Zhang informed him that the Elfcoin platform and related personnel were suspected of criminal activity and had been placed under investigation by the police, making a refund impossible. Liu then sued Zhang based on the entrusted contract, demanding the return of his investment.
The court held that Liu's investment in virtual currencies disrupted financial order and endangered financial security, rendering the entrustment contract between Liu and Zhang regarding virtual currency investment invalid. Zhang did not profit from the entrustment. The losses Liu claimed and his inability to withdraw funds from the platform constituted investment risks inherent in his illegal financial activities. These risks, arising from his illegal virtual currency purchases, are not protected by law; therefore, Liu must bear the resulting adverse consequences. The court dismissed Liu's lawsuit.
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