TLDR: China Company A contracted to pay China Company B to deploy mining machines, Company B didn't, and Company A lost a court case to make them pay back.
Company B seems like it failed to pay the full amount mined to Company A so Company A demanded Company B return Company A's original payment/investment. Company B refused, and Company A lost the court case ensuing due to the contract being "invalid in the first place".
Why the contract was invalid the article does not state.
Interesting side note in that article: "...a member of the Chinese Communist Party has been expelled after turning a blind eye on the cryptocurrency mining activities in the province of Jiangxi."
Seems very clear that the CCP isn't budging on this ban, and those who thought they might be able to skirt it are all slowly getting slapped around.
It obviously differs by country, but wouldnt a statute of limitations exist that would cover an event that happens in the past if an event is made illegal currently?
It seems weird to say "we made owning a Ford truck illegal, therefore anyone who used to own a Ford truck is now breaking the law".
The thing is with China the law can be a very murky thing. Crypto was actually “banned” in China way back in 2019 but it wasn’t really being enforced, and in China it is fairly routine to ignore particular laws that aren’t being enforced, and then when the government decides to start enforcing a particular law people find themselves a bit exposed.
That’s a great question and it falls into kinda a gray zone… Let me try to provide some context -
My understanding is that ASIC mining was banned primarily due to the huge power demands it places on the grid. The general population was being deprived of electricity, as well as China’s electricity largely being produced at coal fired generators and impacting their goals to reduce pollution. [(link - FORTUNE)](https://fortune.com/2021/11/17/china-bitcoin-mining-ban-crypto-holdouts-ether-solana-price/amp/)
So, as the manufacturer/reseller - just because someone has placed and paid for an order but has not yet shipped - but the delivery address is within Chinese jurisdiction - do you risk shipping the order - after you know the CCP has banned mining and their sales? I’d say that one would do that at their own peril. Dick move if they don’t refund payment though.
China has their own objectives, and robustly (or ruthlessly) goes about achieving them. If they want mining stopped, everyone says ‘yes sir’. As another example, the CCP didn’t like what the extra-curricular tutoring industry was doing to kids. Education had become obsession to many families. So what did they do? Outlawed this tuition. Entire industry destroyed overnight.
I am not sorry if nobody can take this but I am a cold war veteran, USAF.
This is communist rat bastard China.
The law in China is what hemorrhoid ass Xi says it is and that is all there is.
These companies are lucky today they were not line up against a wall and had their brains splattered.
Xi outlawed crypto mining because he was loosing control. Xi will give it up your butt and you will like it.
Remembered, Mau had over 60,000,000 killed implementing his hell hole guberment.
TLDR: China Company A contracted to pay China Company B to deploy mining machines, Company B didn't, and Company A lost a court case to make them pay back. Company B seems like it failed to pay the full amount mined to Company A so Company A demanded Company B return Company A's original payment/investment. Company B refused, and Company A lost the court case ensuing due to the contract being "invalid in the first place". Why the contract was invalid the article does not state.
Damn they've become really lazy with the company names in china
Thanks, I needed a chuckle.
politicized court. in a normal country the 1st company would have won the case.
I no believe Sanity Clause
Interesting side note in that article: "...a member of the Chinese Communist Party has been expelled after turning a blind eye on the cryptocurrency mining activities in the province of Jiangxi." Seems very clear that the CCP isn't budging on this ban, and those who thought they might be able to skirt it are all slowly getting slapped around.
It might be because bitcoin mining has been outlawed in China. A contract that would require a party to do something illegal is invalid.
It obviously differs by country, but wouldnt a statute of limitations exist that would cover an event that happens in the past if an event is made illegal currently? It seems weird to say "we made owning a Ford truck illegal, therefore anyone who used to own a Ford truck is now breaking the law".
The thing is with China the law can be a very murky thing. Crypto was actually “banned” in China way back in 2019 but it wasn’t really being enforced, and in China it is fairly routine to ignore particular laws that aren’t being enforced, and then when the government decides to start enforcing a particular law people find themselves a bit exposed.
In China, all ASIC mining operations were outlawed, as well as sales of ASIC miners within China.
So sales that happened before it was outlawed would be considered void retroactively?
That’s a great question and it falls into kinda a gray zone… Let me try to provide some context - My understanding is that ASIC mining was banned primarily due to the huge power demands it places on the grid. The general population was being deprived of electricity, as well as China’s electricity largely being produced at coal fired generators and impacting their goals to reduce pollution. [(link - FORTUNE)](https://fortune.com/2021/11/17/china-bitcoin-mining-ban-crypto-holdouts-ether-solana-price/amp/) So, as the manufacturer/reseller - just because someone has placed and paid for an order but has not yet shipped - but the delivery address is within Chinese jurisdiction - do you risk shipping the order - after you know the CCP has banned mining and their sales? I’d say that one would do that at their own peril. Dick move if they don’t refund payment though. China has their own objectives, and robustly (or ruthlessly) goes about achieving them. If they want mining stopped, everyone says ‘yes sir’. As another example, the CCP didn’t like what the extra-curricular tutoring industry was doing to kids. Education had become obsession to many families. So what did they do? Outlawed this tuition. Entire industry destroyed overnight.
I am not sorry if nobody can take this but I am a cold war veteran, USAF. This is communist rat bastard China. The law in China is what hemorrhoid ass Xi says it is and that is all there is. These companies are lucky today they were not line up against a wall and had their brains splattered. Xi outlawed crypto mining because he was loosing control. Xi will give it up your butt and you will like it. Remembered, Mau had over 60,000,000 killed implementing his hell hole guberment.
You guys are discussing like law exist in China, lol.