Shandong Court Hears Case on Entrusted Virtual Currency Investment Losses, Rules Plaintiff Bears Own Losses

Odaily Planet Daily reports that the Qianqiu District Court has released a typical case. Liu entrusted a friend, Zhang, to invest in Alifa currency. Shortly after the investment, the platform became inaccessible. Zhang informed Liu that the platform and its responsible persons were suspected of criminal activity and had been filed by the police, and the investment funds could not be refunded. Liu sued Zhang, claiming the return of the investment funds based on the entrusted contract. The court held that investing in virtual currencies disrupts financial order and endangers financial security. The entrusted contract established between the parties is invalid. Zhang did not profit from the entrusted act, and Liu’s losses are risks associated with illegal financial activities, which are not protected by law. The court dismissed Liu’s lawsuit. The court pointed out that, according to notices issued by the People’s Bank of China and ten other departments, virtual currency-related activities are considered illegal financial activities, and related civil legal acts are invalid. The losses resulting from these are to be borne by the investors themselves.