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In a recent ruling, the Changsha Intermediate People’s Court in Hunan Province, <a href="https://ultramining.com/news/en/immersion-cooling-transforms-chinas-crypto-mining-landscape/">China</a>, has concluded a significant case involving a fraudulent crypto mining contract worth approximately $230,000 (1.65 million yuan). The case, which has drawn considerable attention, highlights the legal and environmental implications of crypto mining activities in China, according to <a href="https://www.cryptonewsz.com/chinese-courts-verdict-crypto-mining-fraud/">Cryptonewsz</a>. 
 
The case originated in May 2021 when the plaintiff, Luo, entered into contracts with a Hunan-based company for the purchase of five servers intended for cryptocurrency mining. Luo paid the full amount, but the company failed to deliver the promised equipment and software systems. Additionally, Luo did not receive any of the investment returns guaranteed by the company. Consequently, Luo filed a lawsuit to terminate the contract and seek compensation. 
 
The Tianxin District Court of Changsha City ruled that the contract was invalid, citing violations of public order and good morals. The court ordered the defendant company to return 1.62 million yuan to Luo, with the company’s owner, Fan, held jointly responsible for the payment. The court also noted that both parties were at fault, leading to each bearing a loss of 30,000 yuan. 
 
The case underscores the growing legal scrutiny surrounding crypto mining in China, particularly following the September 2021 ban on crypto trading and mining by several Chinese authorities. The court emphasized that crypto mining's high energy consumption poses environmental risks and threats to national interests, reinforcing the country’s stance against such activities.

Chinese court rules against mining firm

Ultramining_Eng

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