Yinchuan Court mediates a virtual currency entrusted investment dispute, and the defendant refunds the investment principal.

Odaily Planet Daily News: The Yinchuan City Xingqing District People’s Court has recently concluded a civil and commercial dispute arising from entrusted investment in a virtual currency. After the plaintiff, Wei (surname) (full name withheld), met the defendant, Li (surname), and Hu (surname) (full name withheld) online, the plaintiff transferred funds to Li, instructing Li to jointly conduct virtual currency investment operations with Hu. The initial investment generated some returns, and the plaintiff participated in the profit distribution. Afterward, the plaintiff sought repayment of the investment principal due to urgent need for funds, but was unsuccessful, and then filed a lawsuit with the court, claiming “unjust enrichment.”

After reviewing the case, the presiding judge held that the underlying legal relationship in this matter should be an entrustment contract relationship, and explained to the plaintiff that suing on the grounds of unjust enrichment carries a high risk of losing. At the same time, the judge pointed out to the defendants that there indeed was an entrusted investment relationship between both parties, and that if the case proceeded as a dispute over an entrustment contract, the defendant would very likely be required to return the money. Through mediation, the plaintiff withdrew the lawsuit against Hu, and Li returned the investment principal to the plaintiff; the two sides reached a settlement agreement.