In a recent ruling, the Supreme Court of British Columbia has ordered Daniel Tambosso to repay $1.2 million to plaintiff Hung Nguyen, settling a significant legal dispute over a Bitcoin loan. This case highlights the growing presence of Bitcoin loan repayment legal disputes in Canadian courts.
The court's decision mandates that Tambosso return the equivalent of 22 Bitcoin (BTC) to Nguyen, reflecting a total of $1,240,106.22 in damages. Justice Fitzpatrick issued the ruling, noting that Mr. Nguyen is entitled to court-ordered interest on this amount from September 24, 2021.
The dispute began in September 2021 when Nguyen, introduced to Tambosso through a mutual acquaintance, agreed to loan him 18 bitcoins. Shortly after the initial transfer, Tambosso requested an additional 7.5 bitcoins. Nguyen consented to this additional loan of 4 bitcoins on September 22, 2021. Despite the loan's terms specifying repayment within 48 hours, Tambosso failed to return the original 22 bitcoins as required by the contract.
The judge described this case as involving an “old-fashioned cause of action” but with a “modern twist,” given that the loan was in cryptocurrency. This legal precedent for Bitcoin loan repayment underscores how traditional legal principles are adapting to the world of digital assets.
The increasing frequency of court judgements supporting cryptocurrencies reflects the growing acceptance and adoption of digital assets. For instance, on August 30, Bitcoin mining firm Rhodium Enterprises, which had recently filed for bankruptcy, received court approval to secure a loan in either US dollars or Bitcoin. This decision is notable given Bitcoin’s price volatility, which complicates loan repayment predictions. Additionally, the US Supreme Court made a landmark ruling on June 23, 2023, favouring cryptocurrency exchange Coinbase. This ruling, the court’s first cryptocurrency-related decision, halted ongoing legal proceedings against Coinbase in two California cases. Similarly, on August 16, the Dubai Court of First Instance recognised cryptocurrency salary payments as valid under employment contracts, marking a shift from an earlier rejection due to valuation concerns.
Despite this trend towards legal acceptance, authorities remain vigilant against unlicensed crypto operations. On August 23, a US federal court denied crypto exchange Kraken’s motion to dismiss a Securities and Exchange Commission lawsuit alleging Kraken’s operation as an unregistered securities exchange.
In Hong Kong, new regulations effective June 1 have made operating an unlicensed virtual asset trading platform (VATP) a criminal offence. Several crypto exchanges, including Crypto.com, Bullish, and Matrixport HK, are awaiting full licences, while some have withdrawn their licence applications.
For more detailed information, you can explore the sources used in this article: Canadian court orders $1.2M Bitcoin loan repayment
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