Canadian court orders $1.2M Bitcoin(BTC) loan repayment
The Supreme Court of British Columbia has ordered $1.2 million in damages to be paid in a Bitcoin-related loan dispute, demonstrating the rising legal recognition of cryptocurrencies. The Supreme Court of British Columbia has ordered defendant Daniel Tambosso to reimburse $1.2 million to plaintiff Hung Nguyen, resolving a contentious dispute over a loan of 22 Bitcoin (BTC) that Tambosso obtained from Nguyen in September 2021. “Mr. Nguyen was granted $1,240,106.22 in damages from Mr. Tambosso. Mr. Nguyen is additionally awarded court-ordered interest on the foregoing amount beginning September 24, 2021,” Justice Fitzpatrick declared. In September 2021, Nguyen met Tambosso through a common friend and realised he needed to borrow some Bitcoin from him for a project he was working on. On September.
The judge stated that regardless of whether Tambosso’s proposal was successful, he was compelled by the provisions of the contracts to refund the original 22 Bitcoin to Nguyen. According to the Judge, the case had a “old-fashioned cause of action” with “a modern twist,” as the loan had to be repaid in Bitcoin.
Many court judgments have started to favor crypto
The increase of court judgments favouring cryptocurrency indicates that the asset class is widely accepted and adopted.
On August 30, Bitcoin mining startup Rhodium Enterprises, which had recently filed for bankruptcy, gained court authority to take out a loan in either US dollars or Bitcoin. The clearance is unusual for bankruptcy financing, given Bitcoin’s price volatility, which makes it difficult to anticipate total loan payments.
On June 23, 2023, the United States Supreme judicial issued a partisan decision in favour of cryptocurrency exchange Coinbase, halting judicial proceedings against the business in two California lawsuits. This was the US Supreme Court’s first cryptocurrency-related decision.
On August 16, the Dubai Court of First Instance recognized cryptocurrency wage payments as lawful under employment contracts, marking a significant shift in the United Arab Emirates’ judicial position to crypto. The verdict was a departure from the court’s previous approach in 2023, when a similar lawsuit was refused because the cryptocurrency involved lacked specific worth.
Authorities act against unlicensed operators to protect users
However, authorities in several jurisdictions have maintained strict control of cryptocurrency exchanges and services in order to protect investor funds. Kraken’s attempt to dismiss a Securities and Exchange Commission complaint alleging it operates an unregistered securities exchange was refused by a US federal court on August 23.
Since June 1, operating an unauthorised virtual asset trading platform (VATP) has been a criminal offence in Hong Kong. Several cryptocurrency exchanges, including Crypto.com, Bullish, and Matrix Port HK, are awaiting full licenses, while others have withdrawn their applications.
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