A court in Shandong, China, heard a case involving losses from entrusted virtual currency investments and ruled that the plaintiff must bear their own losses.

ZkProver · 2026-03-18T04:04:48+00:00

The Zhangqiu District Court of Jinan City issued a judgment in a virtual currency investment dispute case, ruling that the entrustment contract between Liu and Zhang was invalid. Since virtual currency investment constitutes illegal financial activity, Liu's losses are not protected by law and he must bear the risk himself.

ZkProver

2026-03-18 04:04:48

Abstract generation in progress

ChainCatcher News, Shandong Jinan Zhangqiu District Court recently disclosed a typical case: Liu entrusted a friend, Zhang, to invest in “Alpha Currency,” with the platform showing daily returns of hundreds of yuan. After the investment, the platform became inaccessible, and Zhang informed that the platform was under investigation for suspected criminal activity. Liu sued to recover the investment funds.

The court, after review, held that investing in virtual currencies disrupts financial order and endangers financial security, making the entrusted contract invalid. Since Zhang did not profit from the entrusted actions, the investment loss is a risk associated with illegal financial activities and should be borne by Liu himself. The judge reminded that the 2017 announcement by seven departments and the 2021 notice by ten departments clearly state that virtual currency-related activities are illegal financial activities, and investment losses are not protected by law. Even if someone else operates on behalf of the investor, as long as it is essentially participating in virtual currency trading, it is also not protected by law.

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