An interesting case occurred in China: the unfortunate trader has filed a lawsuit against cryptocurrency exchange Huobi, and demanded to pay him damages in the amount of 400 000 yuan, which he lost during the trade bitcoins, but at the same time prohibit trading the bitcoin as a «non-existent» asset.
In October 2016, Those Wang Liang submitted to the exchange a Deposit of 1.4 million yuan. The investor is assumed to profit from price movement of bitcoin, but has not coped with constant pressure after the loss of the money withdrew the remaining funds.
Wang said in his lawsuit that bitcoin does not exist and therefore transactions on the cryptocurrency exchange Huobi needs to be invalidated:
«Bitcoin does not exist, it is not legal tender. According to the theory of Marxism, any product must have a price and cost. However, bitcoin cannot be classified as a commodity. Also, bitcoin cannot be a currency because its release is not initiated by any of the Central banks. Based on all of this, bitcoin should not be used for trading or as payment».
In turn, Huobi said that Wang does not understand what bitcoin is. In addition, with traders trading market, and other participants of the platform. Huobi acts only as an intermediary, working legally. In addition, the price of bitcoin is determined by the market, not the exchange.
People’s court of Haidian district rejected the claim of Those Wang Liang and ruled that the investors themselves must bear the responsibility for their actions:
«Any investor, regardless of what he has invested money, should understand the risks involved and to take responsibility for their actions. The best solution to this is to invest the amount that the investor can afford to lose».
Also, the judge said that bitcoin is not a commodity and has no value. The people’s Bank of China has no law to define bitcoin as a commodity, and Huobi has no right to sell them. The exchange can only offer trading services.