Canadian Court Orders $1.2 Million in Bitcoin Loan
Date: 2024-09-02 Author: Gabriel Deangelo Categories: IN WORLD
The British Columbia Supreme Court has ordered defendant Daniel Tambosso to pay plaintiff Hung Nguyen $1.2 million, resolving a long-running dispute over a 22 Bitcoin (BTC) loan Tambosso took from Nguyen in September 2021.
“Mr. Nguyen is awarded damages in the amount of $1,240,106.22 against Mr. Tambosso. Mr. Nguyen is also awarded interest on the judgment in that amount from September 24, 2021,” Justice Fitzpatrick ruled.
In September 2021, Nguyen met Tambosso through a mutual friend and learned that Tambosso needed Bitcoin to finance one of his projects. On September 21, 2021, with the help of their lawyers, Nguyen loaned Tambosso 18 Bitcoin.
Almost immediately after the transfer, Tambosso contacted Nguyen and asked for another 7.5 Bitcoin. On September 22, 2021, Nguyen agreed to loan Tambosso an additional 4 BTC. The loan was to be repaid within 48 hours.
The judge noted that regardless of the success of Tambosso’s project, he was contractually obligated to return the original 22 Bitcoin to Nguyen.
The judge said the case was an “old-fashioned lawsuit” but with a “modern twist” because the loan was in Bitcoin.
Many Court Rulings Are Starting to Support Cryptocurrencies
The rise of court rulings supporting cryptocurrencies is a sign of the widespread recognition and acceptance of the asset class.
On August 30, Bitcoin mining company Rhodium Enterprises, which recently filed for bankruptcy, was approved to borrow in both US dollars and Bitcoin. This approval is unusual for bankruptcy financing, given the volatility of Bitcoin’s price, making it difficult to predict the total amount of the loan repayments.
Authorities Take Action Against Unregistered Operators to Protect Users
However, authorities in various jurisdictions continue to tighten their grip on cryptocurrency exchanges and services to protect investors’ funds. For example, on August 23, a US federal court denied cryptocurrency exchange Kraken’s motion to dismiss a lawsuit by the Securities and Exchange Commission alleging that Kraken was operating as an unregistered securities exchange.
In Hong Kong, operating an unregistered virtual asset platform has been a criminal offense since June 1. Several cryptocurrency exchanges, including Crypto.com, Bullish and Matrixport HK, are awaiting full licenses, while others have withdrawn their license applications.
