Jiangsu High Court published a contract dispute case involving an "MFA blockchain project" and determined that virtual currency transactions were invalid

The Jiangsu High Court's official account published "Typical Cases of Foreign-Related Commercial Trials in Jiangsu Courts in 2023", which disclosed that Tian, ​​Pan and a third party signed a "Cooperation Agreement" to jointly operate the "MFA Blockchain Project". Pan successively transferred RMB 15.74 million to Tian and the third party to purchase the MFA virtual currency agreed in the above agreement; Tian successively transferred RMB 10.6 million to Pan. Tian claimed that MEXC (Singapore trading platform) took down the MFA/USDT spot trading in September 2020, and the virtual account involved in the case was locked and could not be traded, and the investment had been completely lost. Pan filed a lawsuit, demanding that Tian return the remaining funds and pay interest. The Yancheng Intermediate People's Court held that the virtual currency trading behavior was invalid, and thus ruled to dismiss Pan's lawsuit. Pan was dissatisfied with the judgment and appealed. The Jiangsu Provincial High People's Court held in the second instance that the provision of services to residents in my country through the Internet by overseas virtual currency exchanges also constituted illegal financial activities, and the relevant civil legal acts were invalid, and the losses caused by this were borne by them. The court then ruled to dismiss the appeal and uphold the original judgment.