Cointime

Download App
iOS & Android

A man was defrauded of renting a server for mining for RMB 1.65 million. The court ruled that the contract was invalid and ordered the defendant to refund RMB 1.62 million.

The Intermediate People's Court of Changsha City, Hunan Province, has released a typical case of environmental resources trial involving virtual currency "mining". According to reports, the plaintiff Luo signed three "server equipment and software system purchasing service contracts" with the defendant Hunan Company on May 7, 8 and 18, 2021 respectively. The contract stipulates that the defendant company will provide Luo with five servers, with a total purchase price of 1.65 million yuan; the defendant company promises that the "mining" income will not be lower than the average level of the whole network, and if there is a penalty for coins due to technical problems, the company will bear the corresponding losses. After the contract was signed, Luo paid 1.65 million yuan in installments to the actual owner Fan of Hunan Company as required by the contract. Later, Fan and his company did not deliver the server equipment and software system to Luo, nor did they obtain any promised investment income from Fan and his company. Luo sued the court to request the cancellation of the contract and compensation for losses.

The Tianxin District Court of Changsha City determined that the contract signed by the plaintiff and defendant was invalid due to violation of public order and good customs. Considering that both parties were at fault for the invalidity of the contract involved in the case, the loss should be borne by both parties, with each party bearing 30,000 yuan. Hunan Company, the defendant, has received 1.65 million yuan from the plaintiff and should return 1.62 million yuan to the plaintiff; Fan, the defendant, shall bear joint and several liability for the payment obligation of Hunan Company under his name; and Luo's other claims were dismissed. The defendant appealed, but the Changsha Intermediate Court rejected the appeal and upheld the original verdict.

The Changsha Intermediate Court analyzed that in this case, the purchasing service contract signed by the plaintiff and defendant was to purchase "mining machines" and entrust them to operate to obtain virtual currency and profit. Such activities affect the country's environmental protection, financial security and other social basic order, violate public order and good customs, and do not meet the requirements of new productive forces. From the perspective of the effectiveness of civil legal acts, the contract involved in the case should be denied evaluation and deemed invalid. 

Comments

All Comments

Recommended for you

  • Biggest Altcoin Gainers of the First Week of January 2025

    Three altcoins are in the spotlight this week, with Fartcoin (FARTCOIN), SPX6900 (SPX), and Ethena (ENA) delivering impressive performances.
  • Trump Wants All Future Bitcoin Mined in US—Is That Even Possible?

    Donald Trump will be inaugurated this month—but how likely is the President-elect's pledge that all Bitcoin will be mined in the States?
  • How to Claim Your $20 From Apple's $95 Million Siri Privacy Settlement

    You might be eligible to get $20 per Apple device—up to $100 per household—because Siri allegedly listened more than she should have.
  • Why I'm quitting the Washington Post

    Democracy can't function without a free press
  • JAN3 Raises $5M to Advance Aqua Wallet and Bitcoin Adoption

    JAN3 raised $5M to enhance its AQUA Wallet and expand Bitcoin adoption in underserved markets.
  • Base mulls launching tokenized COIN stock

    The plans are not yet concrete, as Coinbase is awaiting regulatory clarity on securities tokenization.
  • South Korea's Public Prosecutor's Office suspends execution of Yoon Seok-yeol arrest warrant

    According to a report from Korean News Agency, due to the ongoing standoff, the Korean Public Officials Crime Investigation Department stated that the execution of the arrest warrant was stopped at 1:30 p.m. local time today (January 3), which is 12:30 p.m. Beijing time. Currently, the personnel from the Public Officials Crime Investigation Department and the police who were executing the arrest warrant have left the presidential palace. 
  • South Korean court approves arrest warrant for current President Yoon Seok-yeol

    on that day, the South Korean court approved an arrest warrant against Yoon Seok-yeol on charges of insurrection. It is reported that this is the first arrest warrant issued against a sitting president in the history of South Korean constitutional politics. On the 30th, the "Joint Investigation Headquarters" composed of the Korean Senior Public Officials Crime Investigation Department, the police, and the Ministry of National Defense Investigation Department submitted a request to detain President Yoon Seok-yeol to the Seoul Western District Court. The Korean Senior Public Officials Crime Investigation Department has issued three summonses to Yoon Seok-yeol on suspicion of "insurrection leader" and "abuse of power to obstruct the exercise of rights", but Yoon Seok-yeol has not responded. According to the South Korean "Criminal Procedure Law", if the suspect has no justifiable reason to refuse to accept the investigation request, or may not accept the investigation request, the investigation agency can apply to the court for an arrest warrant and conduct a forced investigation on the relevant personnel.
  • Brazilian Congressman Warns of Drex CBDC Risks, Rejects Cash Abolition Bill

    Brazilian congresswoman Julia Zanatta is concerned about the impact of the implemented digital currency (drex) on citizens' lives. Julia Zanatta emphasized that the use of drex (the national central bank digital currency) could lead to the end of physical currency as the country progresses towards implementing it. In a recent interview, Julia Zanatta explained that the use of drex should be voluntary rather than mandatory, as it could become a tool for controlling Brazilians. She has planned multiple backup measures to prevent this from happening and to help Brazilians maintain their current economic freedom.
  • Vivek Ramaswamy X's account was hacked, and the cooperation with USUAL was fake news

    Vivek Ramaswamy, who co-leads the US government efficiency department with Musk, confirmed that his X account was hacked and false news about cooperation with USUAL was previously released.