A recent court ruling in China stated that a man who lent 341 Bitcoins ($9.9 million) to another party is not protected by the law, leaving him at a loss. The court ruled that Bitcoin is not equivalent to fiat currency and cannot be subject to legal enforcement or used to award compensation. This decision highlights the risks involved in lending cryptocurrencies. However, it is worth noting that in a separate ruling, the Hangzhou Internet Court stated that digital assets like nonfungible tokens are protected under Chinese law.

In another development, several Chinese Web3 founders have disappeared, causing concerns in the DeFi sector. Zhaojun He, the co-founder of the cross-chain bridge Multichain, was arrested two months prior, leading to the shutdown of the protocol. Assets stored on the Multichain bridge were converted into stablecoins and transferred out, prompting stablecoin issuers like Circle and Tether to freeze suspicious transactions linked to Multichain. It is speculated that the Chinese police may be behind the movements of the funds.

In unrelated news, there were reports of senior executives at Huobi, a cryptocurrency exchange, being arrested by Chinese police. However, Huobi denied these reports as “fake news,” and its owner, Justin Sun, labeled it as fear, uncertainty, and doubt (FUD). There were rumors circulating that Huobi’s USDT reserves were declining, and its total assets had fallen. Despite these rumors, Sun claimed that Huobi generated over $85 million in profits in Q2 2023 and projected $100 million in profits for Q3 2023.

FAQs

1. What was the court ruling in China regarding Bitcoin lending?

The court ruled that a man who lent 341 Bitcoins to another party is not protected by the law. The court stated that Bitcoin is not equivalent to fiat currency and cannot be subject to legal enforcement or used to award compensation.

2. Are digital assets like nonfungible tokens protected under Chinese law?

Yes, according to a ruling by the Hangzhou Internet Court, digital assets like nonfungible tokens are protected under Chinese law.

3. What happened to the Multichain protocol?

The co-founder of the Multichain protocol, Zhaojun He, was arrested by Chinese police, resulting in the shutdown of the protocol. Assets stored on the Multichain bridge were converted into stablecoins and transferred out.

4. Were senior executives at Huobi arrested by Chinese police?

There were reports of senior executives at Huobi being arrested by Chinese police. However, Huobi denied these reports as “fake news,” and its owner, Justin Sun, labeled it as fear, uncertainty, and doubt (FUD).

Summary

A Chinese court ruling has left a Bitcoin lender with a $10 million loss as the court deemed that Bitcoin lending is not protected by law. Additionally, several Chinese Web3 founders have disappeared, causing concerns in the DeFi sector. Meanwhile, Huobi, a cryptocurrency exchange, denied reports of senior executives being arrested by Chinese police and claimed to be generating significant profits.