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The People's Court of Lingling District, Yongzhou City, has concluded a dispute over unjust enrichment arising from the failure to repay with virtual currency

ChainCatcher news, according to the official WeChat account of the People's Court of Lingling District, Yongzhou City, the People's Court of Lingling District, Yongzhou City recently concluded a dispute over unjust enrichment arising from the failure to repay with virtual currency. In January 2020, Yang transferred 78,000 yuan to Xie via WeChat, hoping that Xie would help him purchase a certain virtual currency on a platform for investment and entrusted Xie to hold it on his behalf. Subsequently, Xie purchased the virtual currency as entrusted by Yang and held it for him. After a period of time, Yang requested to withdraw from the investment, and Xie transferred 3,000 units of the virtual currency to Yang's "wallet address" on the platform, stating that a settlement would be made later.In April 2021, Yang sued Xie in court. Through court mediation, the two parties reached a consensus mediation agreement, and Xie agreed to return 78,000 yuan to Yang in a lump sum. After returning 57,000 yuan to Yang, Xie was unwilling to return the remaining debt, claiming that the 3,000 units of virtual currency previously transferred to Yang were worth over 20,000 yuan and should be deducted from the debt. Yang did not accept this repayment method, and due to the failure to offset the debt, Xie requested Yang to return the virtual currency, but the virtual currency platform had already closed. Xie then sued in court, requesting Yang to return the equivalent cash value of over 20,000 yuan for the 3,000 units of virtual currency.After hearing the case, the People's Court of Lingling District held that the Civil Code aims to protect the legitimate rights and interests of civil subjects and maintain social and economic order. The virtual currency does not have the same legal status as legal tender, does not have legal compensability, and should not and cannot be circulated as currency in the market. Xie's request for Yang to return the cash value of 3,000 units of virtual currency essentially constitutes a claim for the exchange between virtual currency and legal tender, which lacks legality, and the parties did not reach an agreement on the compensation amount for the virtual currency. Ultimately, the court ruled to dismiss Xie's lawsuit. After Xie appealed the judgment, the second-instance court upheld the original ruling.
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