Beijing court rejects monetary compensation in Bitcoin mining contract plea

Cointelegraph Team Cointelegraph

A district court in Beijing has rejected monetary compensation in a Bitcoin (BTC) mining contract plea against a blockchain company.

The Chaoyang District People’s Court on Wednesday deemed the Bitcoin mining contract between the plaintiff and the blockchain firm “invalid,” the South China Morning Post reported on Dec. 16. The plaintiff in the case reportedly paid 10 million yuan ($1.6 million) to the blockchain firm for deployment of mining machines, but incurred losses on his investment.

The Beijing-based plaintiff claimed he earned only 18.5 Bitcoin on his investment and demanded an additional 217.17 BTC in compensation for his losses. The court rejected the plea and also directed the Sichuan branch of the National Development and Reform Commission to look into any illegal mining going on in the province.

China started its crypto mining crackdown last summer, which resulted in the migration of some of the biggest Bitcoin mining companies from the country. China’s Bitcoin hash rate share fell from over 60% to near zero in the aftermath of the mining crackdown. However, even after eradicating crypto mining almost completely, Beijing announced a massive policy drive against crypto trading and mining again in September, prohibiting even small-scale operations at home and banning all foreign crypto exchanges.

China bitcoin mining share April 2021. Source: CCAF

China bitcoin mining share July 2021. Source: CCAF

The Beijing-led crypto crackdown policies have only become stricter with time. Even though Chinese traders have found ways to bypass crypto trading bans on numerous occasions, crypto mining is almost extinct in mainland China.

The latest court case regarding a Bitcoin mining contract highlights China’s stand on crypto-related activities. It sends a clear message to the public that the judicial system won’t protect or recognize crypto-related cases.

Author

Cointelegraph Team

Cointelegraph

We are privileged enough to work with the best and brightest in Bitcoin.

CLARITY Act approval odds sink fast ahead of Congressional hearing

The US House Financial Services Committee’s Subcommittee on Digital Assets, Financial Technology, and Artificial Intelligence (AI) is holding a hearing titled “Building the Future of Finance: How the CLARITY Act Unlocks Innovation” on Friday.

Crypto Today: Bitcoin, Ethereum, XRP give back gains as tit-for-tat US-Iran strikes persist

Bitcoin has corrected by more than 1% on the day, trading below $63,000. This is part of a larger retracement from its weekly high of $65,600. Ethereum and Ripple similarly reflect overall pressure, with ETH falling toward the short-term $1,800 support and XRP hovering below the pivotal $1.10 level.

Dogecoin nears yearly low as bearish bias grows

Dogecoin extends its decline on Friday, trading near its yearly low at $0.069 as bearish sentiment continues to weigh on the meme coin. Weakening derivatives metrics and a deteriorating technical outlook suggest a deeper correction if DOGE slips below $0.069.

Pi Network Price Forecast: Mild recovery in PI marks early signs of trend reversal

Pi Network (PI) shows a mild recovery on Friday, following three consecutive days of consolidation, as selling pressure eases after a steep decline earlier this month. Speculative demand for a potential rebound in PI is on the rise as its Open Interest remains elevated.

Bitcoin’s potential recovery in the second half hinges on these 4 catalysts

Bitcoin (BTC) has fallen over 34% in the first half of this year as the King Crypto failed to capitalize on a good semester for risk assets despite the woes from the Iran war.