The Keelung District Court in Taiwan recently issued a civil judgment, ruling that the defendant Su violated the investment agreement with the plaintiffs and engaged in unauthorized trading of virtual currency LUNA, resulting in significant losses. Su was ordered to fully compensate the two plaintiffs for their losses.
Table of Contents:
Agreement on profit sharing, stop loss, and principal repayment
Su suffered heavy losses from purchasing LUNA
Court orders Su to fully compensate for the losses
The Keelung District Court in Taiwan recently released a civil judgment involving a dispute caused by assisting others in trading virtual currency. In this case, the defendant, Su Yiming, violated the investment agreement with the plaintiffs, Wang Weirong and Zeng Xiangyu, and made unauthorized investments in the virtual currency LUNA while concealing the facts, resulting in massive losses. After discovering this, the two plaintiffs sued Su and demanded full compensation for their losses.
Agreement on profit sharing, stop loss, and principal repayment
According to the judgment, Su and Wang were former classmates and acquaintances. Starting from November 27, 2019, Su, with his extensive experience and substantial profits from investing in virtual currency, persuaded the plaintiffs to entrust their savings to him for virtual currency trading. The two parties reached the following agreements:
1. Su would manage the funds on behalf of the plaintiffs and invest in virtual currency. If there were profits, the plaintiffs would receive 40% as compensation for Su’s management, and the remaining 60% would be their income.
2. If there was a 5% loss on the funds entrusted for investment, Su would immediately stop the investment and guarantee the return of the principal.
3. The investment targets were limited to BTC (Bitcoin), XRP (Ripple), and EOS (Ethereum).
After the agreement was reached, Wang and Zeng transferred a total of NT$1,090,000 to Su in installments in 2019, 2020, and 2022.
Su suffered heavy losses from purchasing LUNA
The judgment further states that during the period when Su was managing the virtual currency investments on behalf of the plaintiffs, except for returning NT$110,000 of Zeng’s principal and NT$30,000 of investment profits due to urgent demands for repayment, Su continued to hold the remaining NT$980,000 of investment funds.
However, starting from March 29, 2022, due to the plaintiffs’ need for funds, they requested Su to liquidate the virtual currency investments and withdraw the entire NT$980,000 investment funds. However, Su repeatedly persuaded the plaintiffs to wait for the best opportunity to sell, claiming that the prospects of the investment targets were promising. It was not until May 9, 2022, that Su finally admitted to the plaintiffs that he had sold the originally purchased virtual currency and suffered almost complete losses. He stated that the LUNA he had accumulated before had become worthless. These statements clearly violated their previous agreement.
Court orders Su to fully compensate for the losses
In the lawsuit, Wang argued that Su had misappropriated the investment funds to purchase LUNA without informing them, thereby violating the contractual agreement between the two parties. She requested the court to order Su to fully compensate for the losses.
We know that LUNA experienced a major collapse and a decline of up to 99.9% in May last year, causing significant losses for global investors.
Su argued to the judge that the two parties did not specify detailed investment details, guarantees for principal repayment and stop loss points, profit sharing arrangements, or prevent him from liquidating the investments. He claimed that Wang only filed a lawsuit after seeing the virtual currency investment collapse and requested the court to dismiss the claims of Wang and Zeng.
However, the judge believed that Wang and Zeng had transferred funds to Su, and Su had also returned profits and principal, indicating that both parties agreed to the entrusted contract. Additionally, the conversations between the two parties in communication software showed that the investment targets were only Bitcoin and two other types of virtual currency. If Wang had authorized Su to manage the investments, he should have informed her that the investment targets had been changed to LUNA. However, Su only revealed this after the currency collapsed. Therefore, it can be inferred that the two parties had agreed that the investment targets were only Bitcoin and two other types of virtual currency, and Su had no reason to conceal the investment in LUNA.
Furthermore, Su’s failure to inform Wang about the investment in LUNA violated his duty to report as an agent in the entrusted relationship, leading to the near-complete loss of the investment funds. Therefore, Wang and Zeng’s request for Su to return the investment funds is reasonable and should be allowed.
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2. Taiwanese group IRS deceived investors with Bitcoin trading, causing losses of 1.5 billion NTD. 6 main suspects sentenced to 8-10 years.
3. Taiwan’s MLM fraud involving illegal fundraising of over 10 million NTD through “USDT to buy virtual currency blind box.”
Tags:
BTC
Luna
Taiwan
Virtual Currency
Virtual Currency Investment
Lawsuit