Firm Loses $1.6M After Beijing Court Rules Bitcoin Mining Contracts ‘Invalid’

In what sets a landmark judicial precedent, the Chaoyang District People’s Court in capital of Red China has voided Bitcoin mining contracts signed in 2019, leading to the litigant losing roughly $1.6 million.

Citing many state-run media outlets, together with Xinhua press association and CCTV, the South China Morning Post reported that in could 2019 Beijing Phonf selling Technology entered into 3 agreements with Zyzc Blockchain Technology, paying ten million yuan ($1.6 million) for the readying of mining machines within the southwestern province of Sichuan.

within the case delivered to court, Phonf selling argued that Zyzc Blockchain didn't pay it 278.1654976 BTC ($13.6 million in current prices) in compensation, tight to come the cash they at first invested with in Bitcoin mining contracts.

in step with the plaintiff, they earned solely 18.5 BTC on the investment.

In its ruling on December 15, the capital of Red China court rejected the lawsuit, stating that the contract between the 2 entities was “invalid within the first instance.”

The court additionally brought the ruling to the eye of the province branch of the National Development and Reform Commission, recommending to shut down any remaining mining farms concerned within the case.