Wuhu City’s Yijiang District Court Finalizes Ruling on 100,000-yuan Dogecoin Mining Dispute
In Brief
The Yijiang District People’s Court of Wuhu City in China finalized its decision on a 100,000-yuan Dogecoin mining dispute case.
The Yijiang District People’s Court of Wuhu City in China concluded a 100,000-yuan Dogecoin mining dispute case. According to the case, the plaintiff Mr. Mao, entrusted the defendant, Mr. Li, to purchase a specific computer for the purpose of mining the Dogecoin cryptocurrency, remitting the defendant the sum of 100,000 yuan, equivalent to $14 000.
Subsequently, the defendant has asserted that he earned income from mining “Dogecoin” but has failed to remit the principal and the generated income to the plaintiff.
Mr. Mao initiated legal proceedings in the People’s Court of Wuhu, seeking the defendant’s restitution of the investment and the assumption of interest losses. The court determined that the equipment involved in the transaction constituted a “mining machine” employed in the “mining” activity for computing and producing virtual currency, a fact acknowledged by both parties.
Consequently, the entrustment contract in question was deemed invalid, and the court in accordance with the Civil Code of the People’s Republic of China, ruled against the defendant. The defendant is now obligated to reimburse the plaintiff with the initially entrusted sum.
China’s Stance on Cryptocurrency Mining
Once the global hub of crypto mining with a significant share of the bitcoin network’s processing power, China accounted for 65% to 75% of the total “hash rate,” and saw a drastic shift in May 2021.
Cryptocurrency mining encompassing bitcoin and other major coins, faced a nationwide ban due to concerns regarding energy consumption and potential economic instability. Despite the ban, mining activities persisted underground.
Earlier this year, a former provincial official received a life sentence from the Hangzhou Intermediate People’s Court. Xiao Yi, the former vice-chairman of the Jiangxi provincial committee of the Chinese People’s Political Consultative Conference, was implicated in a scheme involving bribes and support for cryptocurrency mining.
He provided financial, capital, and electricity-related assistance to local crypto mining firms, contravening the country’s regulations. While Beijing maintains stringent controls on cryptocurrencies within the mainland, Hong Kong, in contrast, is implementing new policies to attract and embrace the cryptocurrency industry.
Disclaimer
In line with the Trust Project guidelines, please note that the information provided on this page is not intended to be and should not be interpreted as legal, tax, investment, financial, or any other form of advice. It is important to only invest what you can afford to lose and to seek independent financial advice if you have any doubts. For further information, we suggest referring to the terms and conditions as well as the help and support pages provided by the issuer or advertiser. MetaversePost is committed to accurate, unbiased reporting, but market conditions are subject to change without notice.About The Author
Alisa is a reporter for the Metaverse Post. She focuses on investments, AI, metaverse, and everything related to Web3. Alisa has a degree in Business of Art and expertise in Art & Tech. She has developed her passion for journalism through writing for VCs, notable crypto projects, and scientific writing. You can contact her at alisa@mpost.io
More articles
Alisa is a reporter for the Metaverse Post. She focuses on investments, AI, metaverse, and everything related to Web3. Alisa has a degree in Business of Art and expertise in Art & Tech. She has developed her passion for journalism through writing for VCs, notable crypto projects, and scientific writing. You can contact her at alisa@mpost.io
