Last Thursday, September 27, HONGKOU district court in Shanghai ruled that the broadcast should be considered in the framework of common property rights. The verdict was handed down following the hearing on unjust enrichment.
The plaintiff in the case was the IT-company, whose name was not disclosed. As a result of the ban on ICO and the work of cryptocurrency exchanges, the company had to reimburse the losses of its investors in less than a month after the IPO. In the course of issue of compensation 20 ETH was accidentally sent to a certain Chen is one of the investors. After repeated attempts to get in touch with Chen, including through legal letters, the company filed for him in court, accused of embezzlement of funds.
During testimony Chen said that in China the ether is not a legal tender, and ICO is prohibited by law. In addition, the country has banned the circulation of cryptocurrency itself. The judge noted that these statements are true, however, investments denominated in the air, fall under property laws. Thus, IT company won the case.
Lawyers defending in court the interests of the plaintiff, identified three main points that need to pay attention in order to avoid the ambiguity of the decisions in subsequent similar cases. First, the ban on cryptocurrency circulation does not change the fact that they can be a means of unjust enrichment. Second, because the accused must be brought before a court completely prohibit the use of the blockchain at least for accounting would be counterproductive: in the case of denial or absence from oticica, the registry can thoroughly reproduce the course of events.
In this case, it is registry entries and also the fact that the company sent ETH through two different subsidiaries, helped her to win the case. However, the company’s lawyers insist that the best means of transfer through the exchange because the registration on such sites involves the passage of KYC.
Third, if the funds were transferred to overseas account, are applied the laws of the country in which was established the fact of unjust enrichment.
Property status was also awarded to cryptocurrencies in General by the government of Israel in February of this year.