While declaring their verdict over an unjust enrichment case filed by a tech company in Beijing, the Shanghai Hongkou District Court pronounce that Ether is protected as “general property” by law.
It all started when China enforced a ban on ICO’s and crypto exchanges in September 2017. A tech company based in Beijing, who released its tokens to raise Ether and Bitcoin on August 8, 2017, had to reimburse their investors. While doing so the company mistakenly transferred 20 ETH to a man named Chen, instead of an investor. The company tried to correct the mistake caused due to “operational errors” but Chen did not reply to the company’s text messages and legal letters.
Seeing no options as Chen wasn’t cooperating, the company filed an unjust enrichment case against him. Chen justified his position by stating that cryptocurrencies including Ether are not recognized as a legal currency. He added that China has banned the circulation of these virtual currencies completely.
While the court affirmed his arguments as true, it decreed that Ether is still protected under the property law and thus in June 2018, the court ruled in favor of the company.
The lawyers representing the company drew three key inferences for future cases.
While the Chinese government maintains an aversion to cryptocurrency, the legal system still recognizes them in order to prevent unjust. In September 2018, China’s Supreme Court stated that blockchain evidence is now legal and admissible in court.
Read more: Despite Crackdown, China Observes A Rise In Bitcoin And Crypto Adoption
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