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Beijing Court dismisses lawsuit, rules in favour of Huobi

Jan 11, 2018 Posted /  6104 Views

Beijing Court dismisses lawsuit, rules in favour of Huobi

The Chinese cryptocurrency exchanges were mulling ever since the trading ban was imposed, however, very little has changed in the operations of the Asian superpower. In a fresh turn of events, a Beijing district court declined a lawsuit against such exchanges. It is noteworthy that several traders had criticized and complained about these cryptocurrency exchanges being liable for their financial losses. Nonetheless, it was apparent that such applications wouldn’t be sustained for long.

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When Wang Tieliang filed a lawsuit against Huobi and its two allies in Beijing to nullify his bitcoin trades on the exchange, the court ruled in favour of the exchange. As per the information provided by the Wang, he deposited 1.4 million yuan at Huobi to venture into bitcoin in October of 2016. However, within a time period of few months, he was not able to cope with the pressure and could not bear losing all his money, and cashed out entirely.

The plaintiff affirmed the court that his trades at Huobi should be nullified because as per his research Bitcoin doesn’t exist at all. he stated that-

Bitcoin does not exist and is not a legal tender. Marxism mentions that a commodity should bear a price and value and certainly, bitcoin cannot be identified as a commodity. Moreover, Bitcoin is not a real currency as it is not dispensed by the central bank. Consequently, it shall not be employed to trade or can be regarded as a payment method.

on the other hand, the attorneys for Huobi contended that Wang is unaware of the real concepts behind the Bitcoin and it’s not the exchange that established a trade with him; it was the other users on the platform that he involved in the trading. Huobi remarked that it only serves as a third-party platform whose functionality is legal and protected. Moreover, Huobi replied that the market determines the price of bitcoin and it is not evaluated by the platform.

The other two partner companies from Beijing solicited that they only benefit from the users' deposit Huobi receive and they have zero involvement.

What does the court say?

The People’s Court of Haidian District, Beijing refused the lawsuit, maintaining that the investors should be honest and accountable for their own losses. The court judgement rendered, when users trade bitcoin they are deemed that they completely appreciate applicable risks affecting it. They should spend only the finances, they think they can afford to squander and shoulder all liabilities.

The court judgement, however, recorded that bitcoin is not a commodity and subsequently, it has no use value. The judgement further stated that PBOC has no power to describe bitcoin as a virtual commodity and Huobi has no permission at all to trade bitcoin. It can only extend trade services.

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Tags: favour of exchange Bitcoin Trades

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