The Supreme Court of British Columbia recently made a ruling requiring Daniel Tambosso to pay $2 million in damages for a loan conducted through Bitcoin, showcasing that the use of Bitcoin is now considered legal.
This new decision mandates that Tambosso refund $1,240,106 to the plaintiff, Hung Nguyen. Of this amount, $150,000 is to be paid to Nguyen to settle a complex case involving a $22 Bitcoin (BTC) loan that Tambosso borrowed from Nguyen in September last year.
“I hereby find and hold that Mr. Tambosso be ordered to pay Mr. Nguyen the following: $1,240,106.22 for damages, along with court-ordered interest on the above amount from September 24, 2021,” Justice Fitzpatrick stated.
Nguyen first met Tambosso in September 2021 through a mutual friend. Seeing that Tambosso needed to borrow some BTC for a venture, Nguyen agreed to lend him eighteen Bitcoins on September 21, 2021, in the presence of their lawyers. After a short period, Tambosso sent an email to Nguyen requesting additional funds to relocate equipment from Media Production, asking for 7.5 more Bitcoin. Subsequently, on September 22, 2021, Tambosso convinced Nguyen to lend him 4 additional BTC. The loan was supposed to be repaid within 48 hours.
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The judge emphasized that Tambosso’s actions could result in either success or failure; however, under the contract terms, he was obligated to return the original 22 Bitcoins to Nguyen. As noted by the judge, the case represented a traditional legal cause with a modern twist, given the loan repayment was in Bitcoin.
Increasing Court Judgments in Favor of Cryptocurrencies
There is a growing trend in legal decisions favoring cryptocurrencies, indicating that they are increasingly being recognized and embraced as assets.
On the same day, a bankruptcy court approved Rhodium Enterprises, a Bitcoin mining firm that declared bankruptcy, to secure a loan in either dollars or Bitcoin. This type of approval is unusual for bankruptcy financing, especially considering Bitcoin’s highly volatile rates, which complicate estimating the total loan repayment.
Late last week, on June 23, 2023, the United States Supreme Court delivered a judgment in the Coinbase case, with a 4-3 split decision. The ruling allowed Coinbase, a cryptocurrency exchange firm, to halt court proceedings in two cases filed in California against it. This marked the first time the US Supreme Court ruled on issues involving cryptocurrencies.
On August 16th, another advancement in the judicial stance on cryptocurrencies occurred when the Dubai Court of First Instance approved the use of cryptocurrencies for salary payments under employment contracts. This decision differed from a similar case in 2023, where a claim was dismissed because the involved cryptocurrency had no certain value.
Authorities Act Against Unlicensed Operators to Protect Users
Despite these developments, authorities in various jurisdictions have maintained strict oversight over crypto exchanges and services to protect investor funds. For instance, a recent court document filed by the United States federal court on August 23rd declined Kraken’s motion to dismiss the Securities and Exchange Commission’s claims that Kraken was operating an unregistered securities exchange.
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Moreover, trading virtual assets without a license in Hong Kong has been criminalized since June 1 of this year. Some notable crypto exchanges like Crypto.com, Bullish, and Matrixport HK are partially licensed and operating while awaiting full licenses; others have withdrawn their licenses.