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Bitcoin is a digital good, says an intermediary people’s court in China

May 7, 2020

The No. 1 Intermediate People’s Court in Shanghai publicly announced an appeal for a dispute over the compensation of Bitcoin for foreign property damage on May 6, according to Baidu news.

The results of the second lawsuit showed that Bitcoin is a digital asset and needs to be protected by law. All illegally obtained Bitcoin must be returned or redeemed at a discountsays the local news.

It all started with a robbery

According to the report, an international couple married in Shanghai, Pete and Xiaoli Wang were robbed by four people in their apartment in 2018. The thieves forced the couple to transfer their cryptocurrencies to the attacker’s accounts. The journalist said:

“These four methods were used to control the couple’s cell phones, restrict their freedom, hit and threaten them, and force them to transfer all 18.88 bitcoins and 6,466 skycoins they own.”

Bitcoin is a digital good, says an intermediary people’s court in ChinaBitcoin is a digital good, says an intermediary people’s court in China

During the first trial, the group of four declared their willingness to return the Bitcoin and Skycoin they had received from Pete and Xiaoli Wang. The court sentenced the thieves to six to fifteen days to eight months in prison for the crime of illegal detention.

The court also ruled that the culprits were unable to return the same cryptocurrency, but instead should return the local value currency at the same price as BTC and Skycoin from June 12, 2018.

It is not so easy

However, all four refused to accept the decision. They appealed the verdict and said:

“Current Chinese laws do not recognize the protected attributes of Bitcoin and Skycoin and do not view Bitcoin and Skycoin as objects or property in the legal sense of China. Therefore, Pete and Wang Xiaoli have no right to request the return of property rights.”

After almost two years of fighting in court, the couple finally gave up getting their Skycoin back. However, they continued to insist that the court order the return of their Bitcoin. Finally, the court ordered the four thieves to return the couple’s 18.88 BTC.

As Cointelegraph has previously reported, there have been similar disputes in China in the past. The Chinese court in Hangzhou made the same decision and recognized Bitcoin as virtual property.

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