People’s Court of Yuanjiang City Rules BZZ Coin Transactions Illegal, Dismisses Fund Return Claim

On September 16, COINOTAG reported a pivotal legal decision concerning virtual currency disputes in Yuanjiang City, Hunan Province. The city’s People’s Court tackled a complex case involving the sale of the BZZ virtual currency. Zhou had enlisted his friend Dai to obtain BZZ from Zheng and transfer it to his imtoken wallet. Subsequently, Zhou brought Zheng to court, demanding the return of 76,518 yuan spent on BZZ and additional capital occupation fees.

Upon trial, the court emphasized that civil activities must adhere to legal regulations and uphold public order and morality. It highlighted that BZZ, akin to Bitcoin, lacks legal enforceability and is not authorized for circulation or use as conventional currency. Virtual currency-related enterprises are categorized as illicit financial activities. Consequently, those engaging in such transactions must assume personal investment risks. The entrusted dealings between Zhou, Zheng, and Dai involving BZZ are unprotected under current Chinese law. Hence, Zhou’s demand for the repayment of 76,518 yuan and the accompanying capital fees were found baseless, resulting in the dismissal of his case. Zhou’s subsequent appeal was also rejected, with the appellate court maintaining the initial verdict.