Beijing's first Bitcoin "commitment" deal decision: deal shows nothing

On December 15, the Beijing Chaoyang Court held a public hearing on a dispute resolution service agreement due to the delay in Bitcoin mining and ruled. The trial court ruled that the contract was invalid and decided to drop the plaintiff's claim for payment of a huge Bitcoin. The case is said to be the first case in which a Beijing court has ruled that a Bitcoin mining contract is illegal. Following the ruling, the Chaoyang Court sent a decision to the Sichuan Province Development and Reform Commission to comment on the virtual "business" benefits involved in the case and recommend that the buildings be involved and qu 'they are repaired.

Put your bitcoins to "mining"

M. A lawsuit for $ 9.55 million

In May 2019, Fengfu Jiuxin Company and Zhongyan Zhichuang Company signed "Computer Equipment Agreement" and "Services" and other agreements, and Fengfu Jiuxin Company to Zhongyan Zhichuang Company for micro servers storage space (for example, "mining technology"), provide value-added data services of "mining" of Bitcoin and pay for additional services The company Fengfu Jiuxin paid the cost management for the company Zhongyan Zhichuang.

After the deal, Fengfu Jiuxin Company paid Zhongyan Zhichuang Company 10 million yuan, and Zhongyan Zhichuang Company bought the "mining machine" and signed a contract with a third company. The "mining machine" operates in the "mines" of Shuiluo and Shawan townships, Mulli county, Liangshan county, Sichuan province.

Upon completion of the contract, Zhongyan Zhichuang Company paid 18.3463 BTC to Fengfu Jiuxin Company for value added tax and has not paid any additional fees since. Fengfu Jiuxin Co., Ltd. repeatedly stated that no benefit was sent to court, so Zhongyan Zhichuang Co., Ltd. sent 278,1654976 bitcoins and asked the court to recover the loss of the micro-storage server after the service. expired. . Fengfu Jiuxin said the value of the Bitcoin Zhongyan Zhichuang was due to send was $ 9.55 million, according to the market value of Bitcoin at the time of the trial.

The court ruled that the "only" act was in the public interest.

If the exchange has prohibited the disclosure of non-compliance with the contract by the competent authorities;

Journalists have learned that the so-called "mining" of Bitcoin is actually work for virtual profit from high-end computers. The developers of Bitcoin initially set a fixed price for Bitcoin virtual currency and wanted to use "mining machines" as quick calculations to solve crypto puzzles in order to obtain Bitcoin.

“Miners” refer to the specialized computers that perform these tasks, and “mines” are where thousands of computers needed to perform these specialized functions have been stored. Since Bitcoin mining uses a lot of energy, “miners” will look for sites that provide cheap electricity for “mining operations”.

The Chaoyang court ruled that this "mining" operation consumes a lot of energy and carbon emissions, which is not necessary for our country's economic development, energy saving and emission reduction, and it is not necessary for our country to achieve CO2 objective. Many risks include high and low carbon neutrality, virtual currency, the risk of counterfeit assets, the risk of market failure and the investment risk received by connecting companies stand out, affecting the well-being of the community. community.

Fengfu Jiuxin Company and Zhongyan Zhichuang Company also signed "trade" agreements when they realized there were risks in the "trade" and Bitcoin market, and authorities were concerned about clearly limiting the Bitcoin market. This agreement is non-binding and affects the rights required by law. The interests of the company are not protected by law and the profits from the above activities must come from both parties themselves.

Ultimately, the court concluded that the agreement between the two parties was void and decided to dismiss any claims made by Fengfu Jiuxin Company.

The judge warned: production and marketing

This must be done in accordance with the law and regulations.

According to Li Zenghui, presiding judge in the case, in September this year, the National Development and Reform Commission and 10 other agencies jointly issued a "reform notice" in the "Mining" game of virtual currency and introduce the destruction of virtual currency. . . Growth has a negative impact on promoting sustainable growth and development, energy savings and emission reductions, and quality measures must be taken to ensure virtually all operations virtual mining.

Li Zenghui said that all production and marketing should be carried out in accordance with the authorization of national laws and regulations and trade rules. public interest. Additionally, Bitcoin does not have the same legal status as Korean fiat currency, virtual currency market activities have no real value, and price management is easy. Financing of the issuance of tokens and commercial risks. National regulators have also issued a series of warnings warning consumers that the risks and losses caused by investing and trading in virtual currency entries must be borne by participants. Citizens should always be aware of risk prevention and be aware of the risks of the cryptocurrency market.

After the court ruled that day, the Chaoyang court sent a letter of recommendation to the Sichuan Provincial Development and Reform Commission to investigate the Bitcoin mining project involved in the case and ban the company. to continue towards "the mining industry". Exploration of “mines” and other “mining” projects in local virtual currency related to activities, events and maintenance.