Canadian court orders repayment of $1.2M Bitcoin loan.
The Supreme Court of British Columbia has ruled that defendant Daniel Tambosso must repay $1.2 million to plaintiff Hung Nguyen, concluding a contentious dispute over a 22 Bitcoin (BTC) loan that Tambosso took from Nguyen in September 2021.
“Mr. Nguyen is awarded damages against Mr. Tambosso for $1,240,106.22. Justice Fitzpatrick also ruled that Mr. Nguyen is entitled to court-ordered interest on the amount starting from September 24, 2021.
Nguyen met Tambosso through a mutual friend in September 2021 and learned that Tambosso needed to borrow Bitcoin for an initiative. On Sept. 21, 2021, Nguyen, with the assistance of their respective lawyers, loaned Tambosso 18 Bitcoin.
Shortly after the initial transfer, Tambosso requested an additional 7.5 Bitcoins. On Sept. 22, 2021, Nguyen agreed to loan him a further 4 BTC. The loan was to be repaid within 48 hours.
The judge emphasized that, regardless of the success of Tambosso’s initiative, he was contractually obligated to return the original 22 Bitcoin to Nguyen.
The judge noted that while the case involved a “traditional cause of action,” it had “a modern twist,” as the loan was in Bitcoin.
Growing recognition of cryptocurrency in court rulings
A growing number of court decisions supporting cryptocurrencies indicate the increasing acceptance and adoption of this asset class.
On Aug. 30, Bitcoin mining company Rhodium Enterprises, which recently filed for bankruptcy, received court approval to take a loan in either U.S. dollars or Bitcoin. This approval is significant for bankruptcy financing, as Bitcoin’s price volatility makes it challenging to predict loan repayment amounts.
On June 23, 2023, the U.S. Supreme Court ruled in favor of cryptocurrency exchange Coinbase in a partisan decision that will pause court proceedings against the company in two California cases. This marked the U.S. high court’s first ruling related to cryptocurrency.
On Aug. 16, the Dubai Court of First Instance made a significant update to the UAE’s judicial stance on crypto by recognizing salary payments in cryptocurrency as valid under employment contracts. This ruling marked a shift from the court’s earlier position in 2023, where a similar claim was rejected due to the crypto’s lack of precise valuation.
Regulatory actions against unlicensed operators
Despite the increasing recognition of cryptocurrency, authorities worldwide continue to enforce strict regulations to protect investors. On Aug. 23, a U.S. federal court rejected crypto exchange Kraken’s motion to dismiss a Securities and Exchange Commission lawsuit, which alleges that Kraken is operating an unregistered securities exchange.
In Hong Kong, operating an unlicensed virtual asset trading platform (VATP) has been a criminal offense since June 1. Several crypto exchanges, including Crypto.com, Bullish, and Matrixport HK, are awaiting full licenses, while others have withdrawn their applications.
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