IPFS

The Wuhan court has concluded a case involving a Filecoin "mining" contract dispute, ruling that the contract in question is invalid

ChainCatcher news, the People's Court of Wuchang District, Wuhan City has concluded a case involving a contract dispute related to virtual currency "mining". The plaintiff, Zhou, signed a "Storage Server Purchase Contract" with the defendant, a technology company, on July 7, 2021. Both parties agreed that Zhou would purchase an IPFS storage server for 179,800 yuan. The IPFS storage server was to be hosted in a data center and managed by the technology company, which guaranteed Zhou that the provided IPFS storage server could offer services on the IPFS network and earn Filecoin rewards, could undergo hardware iteration and upgrades based on network demand, and promised that the amount of coins produced would not be lower than the market average (investment return rate); otherwise, the technology company would make up the difference.After the contract was signed, the technology company managed the storage server purchased by Zhou as agreed. Zhou was able to learn about the daily coin production and pledge release status of the storage server through an application software developed by the technology company. Later, Zhou realized that the virtual currency generated by the storage server was explicitly prohibited by the state, thus bringing the case to court, requesting confirmation of the contract's invalidity, the return of all contract funds, and payment of interest on the funds occupied.After hearing the case, the court held that although the "Storage Server Purchase Contract" signed by both parties was nominally a sales contract for storage servers, its substantive purpose was to purchase computing power storage servers for obtaining virtual currency Filecoin tokens. Combined with the agreement that the purchased storage servers would be hosted in the technology company's data center, it can be seen that the transaction involved in the contract was essentially a "mining" activity using specialized computer equipment to produce virtual currency. Such "mining" activities consume a large amount of energy and produce significant carbon emissions, which is detrimental to the optimization of China's industrial structure and energy conservation and emission reduction, and is not conducive to achieving China's goals of carbon peak and carbon neutrality. Moreover, the production and trading of virtual currency involve multiple risks such as false asset risks, operational failure risks, and investment speculation risks, which harm the public interest. The transaction under the contract violates the principles of green development, harms the public interest, and does not comply with the relevant administrative regulations and regulatory requirements for industrial structure adjustment, thus the contract should be deemed invalid.Both parties bear fault for the invalidity of the contract and should assume civil liability commensurate with their fault. Considering the degree of fault of both parties and the technology company's actual maintenance and use of the storage equipment, the court determined that the technology company should return 120,000 yuan of the contract amount to Zhou. Additionally, since Zhou had fault regarding the contract's invalidity and there was no agreement between the parties on interest for the occupied funds, the court did not support Zhou's claim for interest on the occupied funds. After the judgment takes effect, the parties voluntarily fulfill the legal obligations determined by the effective judgment.

The Pingnan Court is hearing a major case involving the organization and leadership of pyramid selling activities by Time Cloud, with the amount involved exceeding 600 million yuan

ChainCatcher news, the People's Court of Pingnan County publicly heard the case of defendants Lai Mouhang and 3 others organizing and leading a pyramid scheme at the First Trial Court of the People's Court of Gangnan District, Guigang City, involving an amount exceeding 600 million yuan. The prosecution believes that the defendants Lai Mouhang and others, under the guise of mining FIL coins on the Shikongyun company platform, required participants to pay for purchasing mining machines or leasing fees to qualify for membership, and formed hierarchies in a certain order, directly or indirectly using the number of people developed as the basis for rebates, luring participants to continue developing others with high returns, defrauding property, and disrupting the economic and social order. Their actions are serious violations of criminal law and should be held criminally responsible for organizing and leading pyramid schemes. The case is currently under further trial.According to the prosecution, in September 2019, defendant Lai Mouhang set up the IPFS China community website and WeChat public account using the ipfs.cn domain name, vigorously promoting and exaggerating the investment prospects of distributed storage technology and the economic model of filecoin.io. Later, after discussions with Liang Mou Sheng and Hu Mou, Lai Mouhang imitated the economic model of filecoin to create its mining model and developed the filpool.io platform of Shikongyun company. After the establishment of the filpool.io platform, the gang used the website and Shikongyun platform to introduce and promote the distributed storage technology of Shikongyun company, exaggerating the profit prospects of this technology, promoting joint mining, cloud computing power packages, etc., under the guise of selling storage servers to mine FIL coins. Participants could obtain membership status above bronze and the qualification to promote and develop members by purchasing at least 8TB of cloud computing power. Members received commission income and virtual assets corresponding to their membership level, and gained benefits through dynamic and static income methods. The more they invested and developed downlines, the more profits they obtained, thus defrauding participants of their property.On this basis, in February 2021, Shikongyun company developed the bpool.io platform with a cooperative merchant model, using the company - cooperative merchant - member model to carry out pyramid scheme activities. By May 18, 2022, when the case occurred, the total number of members on the Shikongyun filpool.io platform was 57,122, with 16 levels, selling 7,876,518.2 USDT coins, and a sales revenue of 339,562,050.7 yuan. The Shikongyun bpool.io platform had 143 cooperative merchants, a total of 37,015 members, 11 levels, selling 24,049,727 USDT coins, and a sales revenue of 353,443,709.64 yuan, with 57,137 FIL coins sold. Shikongyun company obtained a total of 606,955,717.65 yuan and 62,155,764.8573519 virtual coins through the operation of the filpool.io and bpool.io platforms.
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