Crypto lending invalidated by Chinese court in second landmark ruling
The plaintiff, Mr. Ming, will have no judicial relief to recoup his 80,000 Tether loan after its borrower defaulted. A second Chinese court has ruled that crypto lending is an activity outside the protection of the country’s legal system. According to an Oct. 10 press release by the Nanchang People’s Court, in April 2021, an individual known as Mr. Ming lent a total of 80,000 Tether (USDT) to an individual known as Mr. Gang for stablecoin trading. The loan was to be repaid within six months. However, Mr. Gang defaulted on the loan, leading Mr. Ming to sue his counterparty in court . In its landmark decision this week, the Nanchang People’s Court stated Mr. Ming was required to prove that Tether is a legally issued fiat currency to bring a necessary cause of action for judicial relief, citing a series of legislation forming China’s crypto ban. Since Mr. Ming could not do so, the court ruled that the lawsuit did not fall within the appropriate scope of civil litigation. Mr. Ming sub...