The Chongqing court ruled that the contract of entrusting a pyramid scheme organization to purchase virtual currency was invalid

On May 19, it was reported that the People's Court of Liangjiang New District (Free Trade Zone) in Chongqing recently concluded a high-profile contract dispute case involving a dispute over entrusting members of a MLM organization to purchase virtual currency. The plaintiff, Qin, entrusted the defendant Zhou to register as a member on the MLM organization's online platform and purchase virtual currency, investing a total of 223,500 yuan. Later, the MLM organization's online platform suddenly shut down, making it impossible to conduct transactions. After the trial, the court found that the entrustment contract violated the mandatory provisions of national laws and administrative regulations and should be found invalid. According to the degree of fault of both parties, the court ruled that the defendant Zhou returned the plaintiff Qin 106,700 yuan. After the judgment was pronounced in the first instance, Zhou refused to accept it and appealed. The First Intermediate People's Court of Chongqing Municipality issued a 2nd-round Moderation judgment, rejecting the appeal and upholding the original judgment. At present, the judgment has come into effect and has been automatically fulfilled.