Yinchuan Court Mediates a Virtual Currency Entrusted Investment Dispute, Defendant Returns the Investment Principal

Odaily News The Xinqing District People's Court in Yinchuan City recently concluded a civil and commercial dispute arising from entrusted investment in virtual currency. Plaintiff Wei Moumou met defendants Li Mou and Hu Moumou online and subsequently transferred funds to Li Mou, entrusting him and Hu Moumou to jointly manage virtual currency investment operations. The initial investment generated some returns, and the plaintiff participated in profit sharing. Later, when the plaintiff urgently needed funds and requested the return of the investment capital without success, they filed a lawsuit with the court on the grounds of "unjust enrichment."

After reviewing the case, the presiding judge determined that the fundamental legal relationship should be an entrusted contract relationship. The judge explained to the plaintiff that pursuing the lawsuit on the grounds of unjust enrichment carried a high risk of losing the case. Simultaneously, the judge pointed out to the defendants that an entrusted investment relationship indeed existed between the parties, and if the case proceeded as an entrusted contract dispute lawsuit, the defendants would very likely bear the responsibility of returning the funds. Through mediation, the plaintiff withdrew the lawsuit against Hu Moumou. Li Mou returned the investment principal to the plaintiff, and both parties reached a settlement.