Ningxia Court in China Mediates a Virtual Currency Entrusted Investment Dispute Case BlockBeats News: On April 2nd, the Xingqing Court in Ningxia, China, concluded a virtual currency entrusted investment dispute case. The plaintiff Wei entrusted the defendants Li and Hu to invest in virtual currency, but due to urgent need for funds, they were unable to return the funds and sued for "unjust enrichment". After examination, the court found that there was a deviation between the cause of action and the actual legal relationship. It took the initiative to clarify the legal risks and guide the parties to correctly understand the legal nature of the commission contract relationship. The plaintiff ultimately withdrew the lawsuit against Hu, and Li returned the investment principal. Both parties reached a settlement. In the mediation, the presiding judge explained the litigation risks to the plaintiff and believed that the basic legal relationship in this case should be a commission contract relationship. Based on existing evidence, continuing to sue on the grounds of unjust enrichment carries a high risk of losing. If the plaintiff loses this case, they will need to collect additional evidence to re sue the contract dispute, which will consume a lot of time and energy. At the same time, the judge also analyzed the pros and cons to the defendant: although the plaintiff's current case is not justified, there is indeed a real entrusted investment relationship between the two parties, and the plaintiff's request for the return of funds has corresponding factual basis. If the case enters into a dispute over the commission contract, based on the evidence, the defendant is highly likely to bear the responsibility for return. The judge reminds that according to the Supreme Court's judicial viewpoint, the contract for entrusting investment in virtual currencies is an invalid contract (signed after September 4, 2017), and losses will be shared according to the degree of fault. Investors need to accurately choose legal relationships to claim their rights in order to reduce litigation risks. (Pengpai News)