Beijing District Court has ruled that it does not cause financial harm to a blockchain company under the Bitcoin Mining Contract (BTC).
Chaoyang County Public Court on Wednesday announced the bitcoin mining agreement between the plaintiff and the blockchain company “blood,” the South China Morning Post reported Thursday. According to the report, the plaintiff paid 10 million yuan ($ 1.6 million) to blockchain company to operate the mine, but the investment caused losses.
The Beijing-based plaintiff claims to have earned only 18.5 BTC from his investment and has demanded an additional 217.17 BTC to cover his losses. The court rejected the request and ordered the Sichuan branch of the National Development and Reform Commission to investigate the state’s illegal mining activities.
China launched a campaign against crypto mining last summer, forcing some of the country’s largest bitcoin mining companies to relocate. Shares of Bitcoin Hashire in China jumped 60% to almost zero after the attack. However, even after the destruction of almost all cryptocurrency mines, Beijing announced a major anti-cryptocurrency and mining trade policy in September, banning even the smallest domestic activities and banning all foreign currencies.
Beijing’s cryptocurrency policy has been tough so far. While Chinese traders often look for ways to avoid banning cryptocurrency trading, Chinese crypto mining is almost extinct.
The latest lawsuit over the Bitcoin mining deal underscores China’s position in cryptocurrency operations. This sends a clear message to the public that the judiciary will not protect and recognize cryptocurrency cases.