1. History and Court Decision
2. Growing Acceptance of Cryptocurrencies in Courts
3. Authorities Act Against Unlicensed Operators

The Supreme Court of British Columbia has ordered Daniel Tambosso to repay $1.2 million to plaintiff Hung Nguyen, thereby resolving a dispute over a loan of 22 Bitcoin taken by Tambosso in September 2021.

History and Court Decision

“Mr. Nguyen is awarded damages against Mr. Tambosso for $1,240,106.22,” Justice Fitzpatrick ruled. “Mr. Nguyen is also awarded court order interest on the above amount from Sept. 24, 2021.” 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. 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.

Growing Acceptance of Cryptocurrencies in Courts

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. 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

However, authorities across jurisdictions have maintained strong oversight over crypto exchanges and services to protect investors’ money. On Aug. 23, 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, 2023. Several crypto exchanges, including Crypto.com, Bullish, and Matrixport HK, await full licenses, while others have withdrawn license applications.

The rising number of court decisions in favor of cryptocurrencies, along with stringent regulatory oversight, underscores the importance of complying with legal norms in the fast-evolving crypto industry.