Nantong Court heard a case of converting virtual currency investment funds into loans and rejected the plaintiff's lawsuit

the People's Court of Tongzhou District, Nantong City, Jiangsu Province, heard a case where virtual currency investment funds were converted into loans and rejected the plaintiff Han's repayment lawsuit request. Han and Ji were friends, and Ji suggested that Han invest in Tether, claiming that he could earn high returns. Han purchased 2,000 Tethers through the platform and entrusted them to Ji.

However, Ji did not fulfill his promise, so Han reported to the police and reached an agreement with Ji to convert the virtual currency trading relationship into a loan relationship. Ji issued a promissory note to promise repayment, but did not repay, so Han sued.

The court held that Tether is not a legal currency and does not have legal tender status, so it cannot be used as the basis for loan delivery, and the loan agreement is invalid. Even if the two parties had converted the virtual currency transaction into a loan relationship, the court believed that virtual currency investment behavior is not protected by law, and the losses should be borne by Han himself. In the end, the court ruled to reject Han's lawsuit request.