The first case in Beijing has been instituted. Bitcoin "mining" violates "green" civil law!

On October 25, 2021, the Beijing Dongqing People's Court ruled on the dispute over the original "only" Bitcoin deal. The current decision is legal.

This information contradicts the discretion and goodwill of the public in using the "green terms" of Section 9 of the Civil Law to determine that bitcoin mining is a risky investment that uses significant capital resources and does not contribute not to the achievement of the “double carbon” objective. . Ultimately, the court ruled that the contract was void and that the damage was caused by the company itself.

In May 2020, Shanghai Qinju Company, Beijing Yuner Company and Kunying Company signed "Server Equipment Purchase Agreement", "Project Cooperation Agreement" and "Special Computer Equipment Service Agreement for cloud computing room ”. The two sides have agreed to jointly carry out Bitcoin "management" activities. Yun'er Company has acquired industry experts (eg, "mining machinery") from Kunying Company in the form of business membership. Kunying Company authorized Qinju Company to deliver goods to Yuner on its behalf. The company manages "minors". The income from "mining" was collected by the Qinju company before the Yuner company paid for the "mining machine". In case of network failure, power failure and other problems, in case of production accident, Yuner company will repair and repair the defects in time, and refund the loss to Qinju company. At the time of contract completion, the "miners" involved in the incident were operating on "mines" in Zhaotong, Yunnan and Ordos (23.300, -0.90, -3.72%) in Inner Mongolia, resulting in the company Ju. He suffered significant financial losses and demanded that Yuner Company pay for the loss of 33.01424886 bitcoins due to the outage, which reached 5.3 million yuan after the conversion.

The trial judge, Feng Ning, is an expert on Beijing justice. The judge ruled that Bitcoin is a virtual currency counted by a particular computer and has the characteristics of distribution, restriction and anonymity. Participants in the proof of quantity mechanism have the opportunity to earn a certain amount of Bitcoin as a gift after completing a special task, and this process of obtaining Bitcoins is called “mining”. .

in the act, Bitcoin is a unique virtual currency and does not have the same legal status as currency. Bitcoin “mining” is the essence of risky investments that seek to recover the stock, and investors must bear the risks themselves.

on good manners, "mining operations" consume a lot of energy and energy. 685 "mining machines" contribute to the situation by using more than 57,500 kWh per day, and their production and marketing links easily affect financial security. The risk of speculation is significant. It adheres to the "green principles" of the Civil Code for energy savings, and to the spirit of reducing emissions and protecting the environment against industries that are restricted by regulations. As for "restructuring" and other regulations, "mining" - refers to crimes because they violate civil and cultural norms.

on responsibility, the legal risk, the market risk and the investment risk arising from Bitcoin's "market" activities are borne by the trader himself. The contract is void because it allows investors to ignore regulatory and regulatory risks. In the event of negligence, everyone is responsible for the loss and the consequences thereof.

As of the beginning of this year, organizations such as the State Council for Finance and Development, the National Development and Reform Commission, and the People's Financial Institution of China have started cracking down on “commerce” activities. "Virtual profits, including" mining. " Thu. Commercial and industrial restrictions.

The considerations contained in this document highlight the risks of investing in Bitcoin mining, discuss decision-making behaviors to promote the management and prevention of financial risks, and the establishment of rules for the exercise of rights and responsibilities of parties involved, are essential to the conduct of business operations. . It is important as an example to invest well, protect policies and promote awareness of risk prevention in accordance with the law.