In recent years, with the rise of virtual currency, entrusting others to purchase and invest in virtual currency has become a choice for many in pursuit of 'high returns.' However, is such behavior legally protected? Once a loss occurs, how should responsibility be allocated? Recently, a case tried by the Huinong District People's Court has sounded an alarm for the public.
Case Review
Zhang and Xu are classmates. Xu recommended that Zhang invest in virtual currency on a certain software, promising substantial returns. Zhang believed it to be true and transferred 40000 yuan to Xu, entrusting Xu to register an account and manage the virtual currency. Six months later, the software could not be logged into, and Xu claimed it was due to 'hacker intrusion' that the platform ceased operations. Zhang contacted Xu multiple times without success and thus filed a lawsuit in the district court, demanding the return of all funds.
Court ruling
The Huinong District People's Court found after hearing that Zhang entrusted Xu to purchase virtual currency, and both parties formed a trust contract relationship. However, according to the notice issued by the People's Bank of China and ten other departments (on further preventing and managing the risks of speculation in virtual currency trading), virtual currency investment and trading activities violate public order and good morals, making the relevant civil legal actions invalid, and losses arising therefrom are to be borne by the participants themselves. Therefore, Zhang's act of entrusting Xu to purchase virtual currency is invalid. The district court found that Xu had faults in recommending virtual currency and inducing Zhang to invest, and decided that Xu should bear 15% of the responsibility, compensating Zhang 6000 yuan; Zhang, knowing the relevant national regulatory policies, still believed in the promise of high returns, thus bearing the main fault and taking on 85% of the responsibility, bearing a loss of 34000 yuan.