The Chaoyang District People’s Court in Beijing has rejected a lawsuit for monetary damages from a blockchain firm after its client did not earn money via bitcoin mining, reports the South China Morning Post. The case indicates China’s ongoing lack of recognition and protection for crypto-related interests.
In the first such case tried in China’s capital city, the court said on Wednesday that the contracts were “invalid,” according to reports by various state-run media, including Xinhua News Agency and CCTV.
In May 2019, when China still tolerated bitcoin mining, Beijing Phonf Marketing Technology entered into three agreements with Zyzc Blockchain Technology, paying RMB 10 million ($1.6 million) for the deployment of mining machines in the Liangshan Yi Autonomous Prefecture in southwestern Sichuan province. At that time some local governments, including those in Sichuan, offered incentives to companies to encourage energy-intensive mining farms so they would consume excessive hydro power.