Deep Tide TechFlow News, April 1st, according to The Paper, the People's Court of Xingqing District, Yinchuan City recently concluded a civil and commercial dispute caused by entrusted investment in virtual currencies. In the case, the plaintiff entrusted the defendant with virtual currency investment. When the request for the return of the investment funds was unsuccessful, the plaintiff filed a lawsuit on the grounds of "unjust enrichment." After review, the presiding judge determined that this case was actually an entrusted contract relationship, and explained the litigation risks and legal pros and cons to both parties. Ultimately, the case was amicably resolved through mediation, with the plaintiff withdrawing part of the claims against some defendants, and another defendant returning the principal investment.

The judge also reminded that, according to the judicial opinion of the Supreme People's Court, any entrusted investment contracts signed after September 4, 2017, following the virtual currency risk announcement issued by the People's Bank of China and six other departments, will be deemed invalid due to illegal agency matters. Investors should carefully assess the relevant legal risks.