Equity Senior Partner of Beijing Yingke (Shanghai) Law Firm

　　Committee Member of Shanghai Lawyers Association Fund Professional Committee

　　Today, I mainly share four types of civil and criminal cross-border cases, focusing on a key point for each type. The first type is offline trading of USDT, and this part mainly wants to share common USDT models, especially the offline trading model. The second type is investment in mining machines and mining farms, which is a common type of transaction in civil and criminal cases involving online casinos and how to find them. This part mainly shares the investigation思路 of such cases. The third type is compensation cases in aiding and concealing cases, which mainly explains why currency traders constitute aiding and concealing, what the transaction model is like, and whether there are other investigation思路 besides criminal investigation. The fourth type is the thinking on the enforcement of online casino and how to find it cases. This part mainly shares how to enforce the civil cases of online casino and how to find it after judgment.

　　首先是线下交易USDT常见纠纷类型。常见的USDT分为场内和场外两种形式，场内通常是通过交易所双方注册账号，一个挂卖单，一个挂买单，双方成交后，交易所负责冻结一方的币，另一方向对方转款，上传转款后，交易所再将冻结的币转给买方。

　　场外交易则形式多样，比如说我和你之间有微信，你想要一笔USDT，商量好价格，通过微信转账或者银行卡转账给我后，我再给你的钱包地址转对应的USDT。还有一种场外交易是线下的交易模式，在线上谈好交易的价格和交易的USDT数量，线下约一个地方，见面后，一方出示钱包地址，可以是码，也可以是一串数字，对方转USDT后，再交付现金或者转账给对方，完成交易。

　　通常线下交易的纠纷会非常多，据我们了解，可能在每个地方都会有一个专门针对于线下交易USDT的灰吃灰团伙。他们是以经营为目的，引诱OTC商家或是USDT要换成现金的人进行线下交易，在线下的交易的时候，他们以各种方式把你的币给吃掉，然后拒绝给你现金。这种产品的模式下，收币方谎称自己没有收到币，这种基本上他会向你出一个钱包的码，让你转1万USDT，你转好后，他说对不起，我没有收到；或者他谎称是帮朋友买的，然后他给你一个钱包地址，你按照钱包地址转过去，他说我跟我朋友确认一下，但他没有收到，所以他不能向你付钱，这是第一种情形。

　　第二种情形是，人到了现场以后说，你先付钱，我再给你转币，这个时候他们俩只能坐在一个车上，结果车门开了，三五个大汉来强制你把币转走，然后拒绝付款。

　　还有第三种更夸张的是付款之后强行把钱抢走。基本上在一辆车里，你们俩银货两清，你拿着卖币的现金刚想走，他离开车了，突然车门被拉开，两个大汉把钱搂走。虽然很离谱，但这种情况非常多，我们团队平均每个月都会接受类似案件的咨询。

　　常见的受害人肯定就是卖币的，常见的把戏无外乎也就三种，其中第一种把戏居多，一般来讲，出示钱包地址付完以后，对方否认自己收到，这种是典型的刑民交叉的情形。对于不同的场景，我们分别可以以民事和刑事去评价。

　　第一种收到但谎称自己没有收到的，刑事层面涉嫌诈骗，民事层面涉及Online casino and How to find it 买卖纠纷的起诉。

　　The second one, after confirmation, refusing to make the payment may involve robbery, the object of robbery is USDT, constitutes civil侵权, can claim to sue USDT and require compensation.

　　The third is the most extreme, which is to seize the funds after payment, suspected of robbery, the object of robbery is legal currency, that is, Renminbi, constitutes civil侵权, can be sued. But in reality, it is often the case that the reporting is not successful, and the relevant authorities believe that the transaction of Online casino and How to find it is not protected by law, and the losses suffered should be borne at risk. This returns to the logic that Mr. Liu Lei, the lawyer, has always been talking about, that is, everything is mixed together, because the transaction is not supported, so all your losses will not be legally evaluated, and no case will be filed or handled.

　　The ‘Notice on Preventing the Risk of Bitcoin’ mentioned that Bitcoin is a special virtual commodity in nature, so Online casino and How to find it has property attributes and is protected by law. There are two precedents that are basically consistent with this statement, that is to say, if you encounter the above situation in the process of offline transactions, involving theft and robbery, USDT can be evaluated as property by criminal law.

　　The following is the difficulty in handling civil cases, how to enforce Bitcoin, USDT and other representative currencies, and how to discount and compensate during the enforcement? First of all, whether the civil case involving virtual currency can be sued, and whether the court will support it after the lawsuit, which varies from court to court. This involves two issues, the first is whether the case can be won, and the second is whether the case can be enforced. From the perspective of being able to win, I just mentioned the ‘Notice on Preventing the Risk of Bitcoin’ and the ‘Announcement on Preventing the Issuance of Tokens’, which mentioned the relevant risks of Online casino and How to find it, but did not deny the property rights of Online casino and How to find it as a property. Therefore, we believe that a judgment and support should be obtained.

　　How should we solve this problem at the enforcement stage of the court? I transferred you 50,000 USDT, an offline transaction, but you did not pay me the money. Then I sued you for the return of 50,000 USDT, and the court supported it. But how should we solve this problem at the enforcement stage of the court? Because as everyone knows, Online casino and How to find it is different from our traditional property, cash, stocks, disposal of real estate, vehicles, etc., our laws can enforce. However, Online casino and How to find it is stored in a wallet address, which can only be opened with your replacement word as the password, and even the service provider of the wallet does not have the authority to open it, and the service providers are also not in the country.

　　If Online casino and How to find it is stored in an exchange that is not located in the country, and there is no good cooperative execution relationship with the mainland courts, the object of return after a favorable judgment is USDT, and the court cannot directly seize USDT nor know where USDT is located. Even if it knows, it does not have the judicial assistance capacity. This is the most frustrating point for lawyers in civil cases involving cryptocurrency.

　　The view of the Shanghai court is that Bitcoin, as virtual property, has property attributes and is subject to the adjustment of property rights laws and regulations. When Bitcoin is subject to execution and delivery, the executing court refers to the specification of delivery claim rights to deal with it and determines whether the被执行人有可供执行的比特币. If the被执行人 has no Bitcoin available for execution, based on considerations of public interest and the concept of goodwill and civilization, after consultation and agreement between the parties, the compensation is made at the price recognized by both parties; if consultation fails, the applicant for execution may file a separate lawsuit.

　　What I want to share next is the disputes related to investment in mining machines and mining farms. Disputes related to investment in mining machines and mining farms are also the disputes we have participated in during our contact with customers in the Online casino and How to find it investment field. In the Online casino and How to find it field, there is a very fashionable term called ‘mining’. It’s hard to imagine that in this document at the national level, there is such a popular expression as ‘mining’, without other more vivid words that can explain its meaning.

　　What is mining, then? In fact, those familiar with blockchain know that the blockchain principle of Online casino and How to find it is distributed accounting, and the first type of Online casino and How to find it is Bitcoin, which is produced through a process called ‘mining’. Bitcoin mining uses complex algorithms to verify and process transactions. Once a computer runs the algorithm to verify and process a block of transactions, it will receive a certain amount of Bitcoin as a reward. So to put it simply, mining is to run a large amount of computing power to run a certain program, during which, according to the principles of randomness or intervention, the corresponding rewards are given.

　　There are many common waste products in mining, and the main costs of mining come from two sources. Bitcoin mining requires a large amount of electricity and continuously consumes the computing power of computers. Assuming this is a mining farm, there are a group of hosts operating at different stages, and this process takes a long time, so it consumes a lot of electricity. Common mining farms are distributed in places with cheaper electricity in our country, such as Xinjiang, Qinghai, and Guangxi with abundant hydroelectricity.

　　There is also a problem when I invest in minerals, I may not see where the actual mining machine I bought is located. At this time, someone said, ‘I can install how much computing power equipment here, near a certain hydropower plant or a certain thermal power plant for operation. Do you want to invest to start it, or buy a part, and I will also invest a part.’ What is common here is that after I purchased the corresponding mining machine, it is basically not in my home, and it is delivered to the甲方 for storage and operation, so this type of dispute is more common. The common reason is that it is basically difficult for the乙方 to reach the promises of the甲方, such as mining a certain number of Online casino and How to find it, and the future market value of Online casino and How to find it, so disputes arise. In such cases, everyone basically signs a server sales contract and a server hosting operation contract, where the sales contract is for you to buy these computers, and the hosting operation contract is for you to place the mining machine on my mine and I will help you mine a certain mineral.

　　After the dispute arises, from the perspective of the investor, he hopes to recover his investment. The core issue in handling this type of case is to claim the invalidity of these contracts. The legal effect of claiming the invalidity of a contract is very simple, just claim the return. From the perspective of the甲方, you need to return all the legal currency to the乙方. From the perspective of the乙方, if the mining machine is in your hands, you need to return the mining machine.

　　One of the cases involving virtual currency in the top ten commercial cases of the National People’s Court in 2020, its logic is that the applicant, knowing the mining and social dangers as well as the explicit ban by relevant departments on Online casino and How to find it related transactions, still continued to purchase mining machines for mining. The agreement formed between the applicant and the respondent regarding the mining machines damages the public interest, is not conducive to energy conservation and environmental protection, which is the logic of energy conservation and green environmental protection in our civil law. One of the cases we handled was an arbitration case of the Hangzhou Arbitration Commission, in which we argued that both the mining machine and service contracts were invalid and ultimately obtained all equipment, co-tenancy, and operational services. We basically accept one or two such cases of consultation every month, and the existing business should still be considerable.

　　The third category is a dispute related to property damage in Online casino and How to find it. Cases of this type are relatively rare, but because they are particularly interesting, I still want to share them with everyone. This case occurred in Baihe County, Shaanxi Province, and the situation was relatively simple. Assuming I am the victim and have a good relationship with the local leaders, one day, someone pretending to be a local leader communicated with me on WeChat, saying that money was needed and asked me to wire 280,000 yuan to a certain account immediately. Thinking that the leader valued me so much, I dared not call to verify, especially since the leader said he was still in a meeting, so I transferred the money according to the leader’s instructions.

　　For example, if I transferred money to Lawyer Hu, of course, Lawyer Hu is not the mastermind behind the scenes; he was just using a card that was used by someone else. Lawyer Hu received the money and gave it to Lawyer Liu, Lawyer Liu received the money and gave it to Lawyer Zheng, and Lawyer Zheng received the money and bought a batch of USDT from Gong, who is the defendant in this case. After a few days, I met this leader and asked if he had received the money from the previous two days. The leader said, ‘What money?’ I then reported the case, filed a lawsuit for online fraud, and treated Lawyers Hu, Liu, Zheng, and Gong as suspects. Because Gong was involved in the buying and selling of USDT, the money was received in Gong’s name. Ultimately, Gong was立案侦查 for aiding and abetting after being released on bail, but the suspects could not be apprehended overseas.lottery online website and The latest method

　　Lawyer Gong knew the leader and asked the police what should be done with his money. The police said, ‘Anyway, the case can’t be handled because the suspect can’t be found, and you might as well sue the lawyer.’ Lawyer Gong really sued the lawyer, and the court even filed the case, not only filed it but also gave a judgment. The court said that Lawyer Gong’s property has been lost and cannot be recovered through criminal proceedings, and it is appropriate to recover it through civil proceedings. The funds involved are from the ‘Online Casino and How to Find It’ exchange, but Lawyer Gong’s investment behavior using ‘Online Casino and How to Find It’ is illegal. Due to the invalidation of the appraisal, Lawyer Gong knew his actions were illegal and still did it. His actions violated the lawyer’s property rights, so the 280,000 yuan should be returned to this lawyer.

　　After accepting the委托 of the parties involved in this case, it was perplexing. The court’s logic is that the transaction of ‘Online Casino and How to Find It’ is illegal, so the proceeds obtained from the transaction are not protected by the court. Since there are still victims coming forward, the money should be returned to the victims.

　　We believe there are major issues with this case, so we filed an appeal. The following are our views:

　　The first error is the incorrect identification that the funds defrauded cannot be pursued through criminal proceedings. Because the criminal case is ongoing, the suspects have not been apprehended, nor have they been sentenced, and the suspects have not made any compensations. If the suspects make compensations or execute criminal procedures, your loss will occur.

　　The second point is the failure to investigate whether the three individuals, BCD, have returned the stolen money or if it has been recovered by the authorities, that is, whether lawyers Hu, Liu, and Zheng have made compensations to the victims. Why bring this up? In fact, it is still what I have emphasized repeatedly. In the case of ‘Online Casino and How to Find It’, regardless of the legal provisions or how the investigating authorities view it, criminal cases must have legal basis and judicial interpretations, while civil cases must discuss the basis of the claim.

　　Next, we need to consider whether Gong lawyer’s behavior will cause damage to lawyer E’s property. First, there is no infringement. Lawyer Gong’s funds come from the transaction with lawyer Zheng, not directly from me. Second, there is no causal relationship. If lawyer Gong had not sold USDT to lawyer Zheng, and lawyer Zheng transferred the money to lawyer Gong, I would still be deceived, that is, there is no causal relationship between lawyer Gong’s behavior and my deception result, whether he is there or not, my money has already been deceived.

　　The third issue is the absence of subjective fault. Lawyer Gong cannot know the source of my funds, nor does he know me, so he cannot damage my assets.

　　The fourth issue is that the transaction behavior of Online casino and How to find it has not been prohibited by law and belongs to normal transactions. Lawyer Gong and lawyer Zheng’s transaction behavior between them is a safe Online casino and How to find it transaction. Assuming he does not appear in this criminal act, their one-on-one transaction behavior belongs to normal transaction behavior, because virtual property has property attributes and is protected by law.
betting online website lottery onlineJoin us
　　The fifth issue is that the funds obtained by lawyer E are obtained improperly and should not be returned.

　　The sixth issue is that the related criminal cases have not been concluded, and the trial of the first-instance case should be terminated, and the final decision should be based on the conclusion of the related criminal cases. Even if it is recognized that Gong lawyer’s behavior has damaged the victim’s rights, the extent of the damage, whether it is the full 280,000 transferred, must wait until the criminal case is concluded, all the suspects have been apprehended and executed, and the 280,000 has not been filled, then the compensation liability should be assumed. Therefore, after we put forward the following appeal opinions and the victim withdraws the lawsuit after the court’s explanation.

　　Today’s fourth part is the handling approach for the execution of cases related to Online casino and How to find it. The most critical issue in cases related to Online casino and How to find it is the execution issue. Regardless of the nature of the underlying legal relationship or the reasons for the court’s judgment that the defendant return USDT, the focus should be on how USDT will ultimately be executed. We do not discuss the situation where the other party actively cooperates and voluntarily returns the money. If the other party does not actively cooperate, the court cannot find his wallet address and cannot coordinate with the exchange to carry out execution work, then how should this matter be resolved?

　　Firstly, terminate this execution. After terminating this execution, we need to file a separate lawsuit. The separate lawsuit is filed for the purpose of seeking compensation for property damage liability and requesting a judgment that the infringer compensate for the loss. In this case, we have to consider two unavoidable issues in a separate case, one is whether it constitutes a duplicate lawsuit. In the original case, the plaintiff has already sued the infringer for the return of the Online casino and How to find it, and the court has made a judgment and the execution has been effective. Suing for the same matter again may constitute a duplicate lawsuit.

　　We believe that the task does not constitute a repetitive lawsuit. To illustrate this issue, I will give you a relatively simple example. For example, Lawyer Liu puts his newly purchased ‘Yao Yao Lian Xian’ in my hands, and ten days later, when he wants to retrieve it, I refuse to return it. This ‘Yao Yao Lian Xian’ is a limited edition with a signature, which is very valuable to Lawyer Liu. Therefore, Lawyer Liu sues me for the return of the original item, and the court ruled that I should return ‘Yao Yao Lian Xian’ to Lawyer Liu. However, at the execution stage, I refuse to hand it over for various reasons. At this point, Lawyer Liu can file a claim for valuation compensation. These are two legal relationships, the first is the return of the original item, and the second is the claim for valuation compensation if the original item cannot be returned. So this is the logic of a separate lawsuit.

　　Of course, there are corresponding legal relationships to accompany it. What is the method of valuation compensation? You can see this is a case we have represented. In this case, the method of valuation is to take the damage to the creditor as an example, and it is more appropriate to confirm the scope of the plaintiff’s loss at the time of the act of infringement by confirming the value of the property at the time of the act of infringement. It can be determined from the data of the exchange at that time how much USDT was the value at the time of the act of infringement, and the price for valuation compensation can be determined.

　　This is different from the general act of infringementlottery victory，We need you. Not to mention Online casino and How to find it, the value of stocks fluctuates. When determining the act of infringement, it directly affects the valuation compensation, and it finally becomes the amount of the statutory amount. I will give you an example of logic. Suppose I lend you 100 billion Ethereum, at the time of lending, each coin is worth 20,000 yuan, when I sue you, each coin is worth 30,000 yuan, and when the execution takes place, each coin is worth 40,000 yuan. This is an ascending logic, of course, there is also a descending logic. When the court determines the valuation compensation, it needs to determine what the transaction price was at the time of the act of infringement.

　　We have such a thought. When identifying an act of infringement, if there is a case of borrowing coins, we believe that if the deadline for returning the coins is agreed upon, the deadline should be the day when the defendant refuses to return. If there is no agreed-upon return period, it should be the day of the request for return. If there is no lawsuit for return and the lawsuit is prohibited, it should be the day when the copy of the complaint is served on the defendant. The logic is that the day you should have returned but have not is the day of the act of infringement.

　　If it is a transaction other than this, we believe it can be divided into the day of delivery, the day of demanding return, the day of judgment for return, and the day of termination of execution. There is also a dispute here. Simply put, we believe that the day when the obligation to return occurs should be regarded as the day of the infringing act, and the amount to be returned should be confirmed at the market price of that day. That’s all I have to share today. Thank you all!

　　Declaration

　　This article is an excerpt from the author’s keynote speech at the ‘7th Yinghe Criminal Defense Forum: Defense of Criminal Offenses Related to Online Casino and How to Find It (Guangzhou Forum)’, with some alterations. It is for academic exchange only and does not represent the formal legal opinion or advice of this office or the lawyers. For any redistribution, prior authorization from the author is required, and the source must be credited.