The Chinese local court ruled a Chia mining service case was invalid

Recently, the Gaotang County People’s Court of Shandong Province tried a service contract dispute case caused by the “mining” of Chia coins in the first instance. It determined that the contract was invalid according to law and ruled to reject the plaintiff’s request for a service fee refund. It is reported that this case is the city’s first invalidation of a network “mining” contract.

The Chinese local court ruled a Chia mining service case was invalid

The court found that the plaintiff Du, the defendant Song, and the defendant company signed the “CHIA Technical Service Contract”, stipulating that the defendant would provide P-disk services. After the contract was signed, the plaintiff paid the service fee, and the defendant provided the plaintiff with the P-disk service. Later, the plaintiff claimed that the defendant did not complete the service within the agreed time limit, and sued the court for a refund of all service fees.

The court found that the plaintiff and the defendant signed the “CHIA Technical Service Contract” and entrusted the defendant to perform P-disk services, with the purpose of participating in the “mining” of the Chia coin network, which is a cryptocurrency-related business activity. This activity involves violations of financial security, market order, and national macro policies, affecting public interests, and violation of public order and good customs, and should be deemed invalid. Therefore, the court did not support the plaintiff’s request for the defendant to return the service fee.

According to Wang Ruiqi, the trial judge of the case, illegal debts are not protected by law. The “Notice on Further Preventing and Disposing of the Risks of Virtual Currency Trading Hype” clearly states: “Virtual currency does not have the same legal status as legal tender, and virtual currency-related business activities are illegal financial activities. There are legal risks in currency investment and trading activities. Any legal person, unincorporated organization, or natural person investing in cryptocurrency and related derivatives that violates public order and good customs, the relevant civil legal actions are invalid, and the resulting losses shall be borne by them.”

Here, the judge reminded everyone that production and business activities should be carried out within the scope permitted by laws and policies, and the public should consciously increase their awareness of risk prevention and not participate in activities that affect public interests and violate public order and good customs.

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