decision

Beijing Fengfujiuxin Marketing and Technology Co. Ltd. v Zhongyan Zhichuang Blockchain Co. Ltd. - decision

<p>This entry was provided by the Sabin Center for Climate Change Law. Please see the terms of use for citation and licensing of third party data.</p>

Litigation

Sabin

Sabin Litigation

Filing Year For Action

In May 2019, Beijing Fengfujiuxin Marketing and Technology Co. Ltd. (“the plaintiff”) and Zhongyan Zhichuang Blockchain Co. Ltd. (“the defendant”) signed three contracts that stipulated the plaintiff would purchase 1,542 micro data storage servers for bitcoin mining and transfer 93% of the profits from the mining to the plaintiff as either fiat currency or bitcoin. The plaintiff paid RMB 100 million to purchase the facilities and maintain their operation. The defendant paid 18.3463 BTC but stopped sharing the profits from the mining operation afterward. Therefore, the plaintiff sued and sought damages of 278.1655 BTC or USD 95.5 million (roughly RMB 67 million).

On December 14, 2021, The District Court of Chaoyang in Beijing rejected the plaintiff’s claims, as the contractual arrangement is voided. According to Article 52(4) of the Contract Law, a contract is void if it harms public interests. To determine the requirements of public interests, the court turned to several “notices” and “announcements” issued by various governmental departments, including the People’s Bank, Ministry of Public Security, NDRC, and Supreme People’s Court, on the prevention and resolution of risks of virtual currency trading. The court found that, according to these policy documents, cryptocurrency-related activities consume an immense amount of energy and can create instability in the financial market, therefore going against public interests. As a result, the contractual arrangements between the parties are invalid because they jeopardized public interests. Unsatisfied by this decision, the plaintiff appealed to the Intermediate People’s Court.

On July 7, 2022, Beijing Third Intermediate People's Court dismissed the plaintiff’s appeal. It upheld both the decision and the reasoning of the court of first instance.

Beijing Fengfujiuxin Marketing and Technology Co. Ltd. v Zhongyan Zhichuang Blockchain Co. Ltd.

The Climate Litigation Database

Find climate change litigation data and indicators for {text}.

{text} litigation

Sabin Center for Climate Change Law provides Climate Litigation Database, a comprehensive database of US and Global climate change caselaw

Quickly and easily search through the complete text of thousands of climate change law and policy documents from every country.

Search the Climate Litigation Database

An aim to achieve a quantifiable outcome within a given time-frame, set by an institution such as a national government.

Policy instruments are techniques or tools used by governing authorities to promote certain policies in order to achieve predetermined goals. Put simply, instruments are how a government tries to achieve its goals, with this taxonomy being focused on national policy instruments.

Risk is the potential for adverse consequences resulting from the dynamic interplay between (climate-related) hazards, exposure, and vulnerability of affected human or ecological systems.

Groups  of people who are adversely affected by climate change or the response to it

A set of principles, processes, and practices that build economic and political power to shift from an extractive economy to a regenerative economy.

Renewable energy means all forms of energy produced from renewable sources in a sustainable manner.

Fossil fuel is a generic term for non-renewable energy sources such as coal, fossil gas, and oil (including crude oil, and petroleum products), that can be used for electricity and heat generation. Fossil fuels are hydrocarbons formed from pressurised and heated organic material buried over millions of years.

Molecules in the atmosphere that play a key role in the greenhouse effect by trapping heat radiating from Earth’s surface.

Area of the economy in which actors engage in identical or related activities.

In human systems, the process of adjustment to actual or expected climate change and its effects, in order to moderate harm, increase resilience or exploit beneficial opportunities. In natural systems, the process of adjustment to actual climate change and its effects; human intervention may facilitate adjustment to expected climate change and its effects.

The management and allocation of funds, assets and investments to meet various objectives

Climate change can have a range of impacts on technological system. Extreme weather events can cause infrastructure failures like power outages or damage to roads and bridges, as well as the impacts from waste following natural disasters. Human activities also cause technological impacts, such as the risks posed by oil spillage and leaks.

Either money or something of monetary value is transferred between two or more organisations, people or countries.

Social protection systems consist of policies that help people manage social risks in order to prevent poverty and maintain decent incomes and living standards

Activities that involve planning, designing and building infrastructure, residential, and commercial structures.

This sector includes firms and individuals offering specialised expertise in fields such as law, accounting, consulting, science and engineering.

A ban is a legal action that prevents the sale or supply of a product or service, or that recalls a product from the market. Examples are bans on SF6, greenwashing, fossil fuel advertisement or single-use plastics.

A financial entity operated or controlled by the state, often with a mandate for social or economic development.

This sector provides communication services, software development, and IT solutions.

Activities of businesses and institutions that provide financial services and products to individuals and organisations.

This sector creates and distributes information and entertainment through television, radio, print, and digital platforms.

Activities of industries that extract natural resources, such as mining, oil, and gas, for commercial use.

Financial support to help individuals manage the effects of unexpected events, securing their livelihoods and increasing the resilience of people and businesses to the changing climate. It’s especially vital in developing regions where everyday risks, climate-related weather extremes, or crop failures can push people into poverty. Without insurance, people may have to resort to selling assets or cutting consumption to cope with losses.

Codes and standards are regulatory instruments that specify minimum standards to protect health and safety. This ranges from performance standards, which prescribe outcomes while allowing flexibility to achieve compliance, to the more prescriptive approach of technology-specific standards.

This sector involves activities to move goods and people, alongside the storage of products.

The processes through which enterprises can identify, prevent, mitigate and account for how they address their actual and potential adverse impacts. Due diligence is the idea that reasonable precautions should be taken to avoid causing harm to people, the environment, or society. It also involves identifying and mitigating risks before they occur.

Beijing Fengfujiuxin Marketing and Technology Co. Ltd. v Zhongyan Zhichuang Blockchain Co. Ltd. - decision

Policy instrument

Risk

Just transition

Economic sector

Finance