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The Supreme Court of British Columbia has ordered $1.2 million in damages to be paid in a Bitcoin-related loan dispute, reflecting the growing legal acceptance of cryptocurrencies.
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The Supreme Court of British Columbia has ordered defendant Daniel Tambosso to repay $1.2 million to plaintiff Hung Nguyen, thereby settling a bitter dispute over a loan of 22 Bitcoin (BTC) Tambosso took from Nguyen in September 2021.
“Mr. Nguyen is awarded damages against Mr. Tambosso for $1,240,106.22. According to the court document,” Mr. Nguyen is also awarded court order interest on the above amount from Sept. 24, 2021,” Justice Fitzpatrick ruled.
In September 2021, Nguyen was introduced to Tambosso through a mutual friend and realized Tambosso needed to borrow some Bitcoin from him for an initiative he was pursuing. On Sept. 21, 2021, along with their respective lawyers, Nguyen loaned Tambosso 18 Bitcoin.
Almost immediately after the transfer, Tambosso contacted Nguyen, requesting an additional 7.5 Bitcoin. On Sept. 22, 2021, Nguyen agreed to loan Tambosso an additional 4 BTC. The loan was supposed to be repaid within 48 hours.
Canadian court demands the repayment of the Bitcoin loan. Source: The courts of British Columbia
The judge noted that regardless of whether or not Tambosso’s initiative succeeded, Tambosso was required by the terms of the contracts to return the original 22 Bitcoin to Nguyen.
According to the Judge, the case involved an “old-fashioned cause of action” but with “a modern twist,” as the loan to be repaid was in Bitcoin.
Many court judgments have started to favor cryptocurrency
A rise in court judgments supporting cryptocurrencies signals the wide acceptance and adoption of the asset class.
On Aug. 30, Bitcoin mining firm Rhodium Enterprises, which recently filed for bankruptcy, received court approval to take a loan in either United States dollars or in Bitcoin. The approval is unusual for bankruptcy financing, considering Bitcoin’s price volatility, making it challenging to predict the total loan payments.
Related: Elon Musk, Tesla beat Dogecoin manipulation lawsuit
On June 23, 2023, the United States Supreme Court ruled in favor of cryptocurrency exchange Coinbase in a partisan opinion that will halt court proceedings against the company in two California cases. This marked the US high court’s first cryptocurrency-related ruling.
On Aug. 16, in a significant update to the United Arab Emirates’ judiciary approach to crypto, the Dubai Court of First Instance recognized salary payments in crypto as valid under employment contracts. The ruling showed a shift from the court’s earlier stance in 2023, where a similar claim was denied because the crypto involved lacked precise valuation.
Authorities act against unlicensed operators to protect users
However, authorities across jurisdictions have maintained strong oversight over crypto exchanges and services to protect investors’ money. In an Aug. 23 court filing, a United States federal court denied crypto exchange Kraken’s motion to dismiss a Securities and Exchange Commission lawsuit alleging Kraken is operating an unregistered securities exchange.
In Hong Kong, for instance, operating an unlicensed virtual asset trading platform (VATP) has become a criminal offense since June 1. Several crypto exchanges, including Crypto.com, Bullish, and Matrixport HK, await full licenses, while others have withdrawn license applications.
Magazine: How Chinese traders and miners get around China’s crypto ban
This article first appeared at Cointelegraph.com News
