Trader suits Huobi Cryptocurrency Exchange
Chinese trader sued virtual currency exchange Huobi Global and claimed for a return of 400 000 yuan that he lost making bitcoin operations. The trader also stated that cryptocurrency trade should be banned and said that these digital assets simply do not exist. In autumn 2016 Wang Liang invested 1.4 million yuan. The trader aimed to gain profit out of bitcoin price volatility, however he did not manage to do that and siphoned off his funds after having lost a part of them. In his claim Wang Liang also mentions that bitcoin does not exist and all deals made at Huobi exchange should be recognized as invalidated:
“Bitcoin does not exist, it is not a mean of payment. According to Marxism, each product should have price and value. However bitcoin is not a product. It is also not a currency because there is no central bank that issues it. These mean that bitcoin must not be used for trade and payment operations”.
Representatives of the exchange replied that the investor just had no idea about what is bitcoin. Moreover, it is not the exchange that makes cryptocurrency deals but other users of the platform which operates legally. In addition, bitcoin price is determined by the market and not by the exchange. Beijing Haidian District Court dismissed the trader’s claim and stated that investors themselves should bear responsibility for their actions:
"Every investor regardless of where the investment is made should consider risks and be responsible. The best solution would be to invest the amount of money that an investor would be ready to lose".
The court mentioned that bitcoin is not a product and has no value. The People’s Bank of China has no right to determine whether bitcoin is a product and whether Huobi can trade it or can not. The exchange can only offer trading services. The court advised investors to consider the issue serious and do not rely on what others think about digital currencies.