An investor lost 1.05 million yuan purchasing cryptocurrency, and a Shanghai court ruled that he must bear all the losses himself.

According to a report by TechFlow Times on February 13th, the Jing'an District People's Court of Shanghai recently heard a case involving a cryptocurrency investment dispute. Ms. Wu, an investor, invested 1.05 million yuan to purchase USDT after being induced by a livestream host. Later, due to an inability to log into the trading platform, she was unable to withdraw her funds. Both the first and second instance courts rejected Ms. Wu's claims, ruling that cryptocurrencies do not have the same legal status as legal tender, and that related transactions constituted illegal financial activities, violating public order and good morals, and were therefore invalid civil acts. She was ordered to bear the losses herself. This case echoes the "Notice on Further Preventing and Handling Risks Related to Virtual Currencies" issued on February 6th by eight departments including the People's Bank of China, reiterating China's prohibitive policy stance on virtual currencies.