PANews reported on November 18 that according to the China Court Network, the People's Court of Xiangyin County, Hunan Province, heard a private loan dispute case involving virtual currency repayment of loans. Among the defendants, Wang and Zhang, Wang borrowed 10,000 yuan from the plaintiff Zhou in July 2020 (Zhang did not ratify) due to capital turnover needs, and the two borrowed 50,000 yuan together in May 2022. Zhang then repaid 40,000 yuan, and Wang repaid the remaining 20,000 yuan with virtual currency through the "TR foreign currency platform" that has been cracked down and closed by the public security organs. Zhou did not recognize this repayment method and took the case to court.
According to the "Notice on Further Preventing and Dealing with the Risks of Virtual Currency Trading Speculation", the court pointed out that virtual currency has no legal status and cannot be circulated and used. Wang's debt repayment behavior is invalid and he needs to continue to repay the loan. In the end, the court ruled that Wang should repay 10,000 yuan in principal and interest, and Wang and Zhang should jointly repay another 10,000 yuan in principal and interest. Both parties accepted the judgment, which has now come into effect. This case shows that virtual currency cannot be used as an effective means of repaying debts.
