Criminal Trial
In a landmark case, a Chinese college student named Yang Qichao has been sentenced to 4.5 years in prison and fined $41,000 for creating and selling a cryptocurrency called BFF. This is the first criminal trial in China involving the issuance of a virtual currency.
The Incident
In May 2022, Yang Qichao created BFF on the Binance blockchain. He then allegedly injected money into the currency and withdrew it, causing its value to plummet. One investor, Luo, lost $41,000 in Tether’s USDT stablecoin.
Defense Arguments
Yang Qichao’s lawyer argued that Luo was an experienced cryptocurrency investor who should have known the risks involved. They also claimed that Luo had profited from the investment, despite initially claiming fraud.
Property Status of Cryptocurrencies
The trial raised the question of whether virtual currencies should be considered property under criminal law. The court acknowledged that cryptocurrencies can have economic value and can be traded on international platforms.
Legal Implications
The case has sparked discussions about the legal status of virtual currencies in China. The outcome may set a precedent for future legal proceedings involving cryptocurrencies.
