In a Bitcoin loan dispute, the Supreme Court of British Columbia told Daniel Tambosso to repay $1.2 million. This is a significant move forward for formal recognition of cryptocurrency in the area.
Justice Fitzpatrick made the decision that Tambosso needs to repay Hung Nguyen for a loan of 22 Bitcoin (BTC) that was given in September 2021. Along with the amount, the court gave Nguyen interest on it from September 24, 2021.
The fight started when Nguyen loaned Tambosso 18 Bitcoin on September 21, 2021, through a common friend, with the agreement that it would be paid back within 48 hours. The next day, Tambosso asked for and got an extra 4 BTC, taking the total to 22 Bitcoin. Even though he agreed to, Tambosso didn’t pay back the loan, which is what led to the court case.
Bitcoin Courts Gain Recognition
No matter how well Tambosso’s business did, Justice Fitzpatrick made it clear that he was still legally obligated to return the Bitcoin. Even though the case is based on old-fashioned law principles, it shows how the role of cryptocurrency in financial agreements is changing.
The decision is in line with a larger trend of courts around the world accepting and enforcing contracts that involve cryptocurrencies more and more. For example, on August 30, a U.S. court let Rhodium Enterprises, a Bitcoin mining company that is currently bankrupt, get a loan in either U.S. dollars or Bitcoin. This is a rare move because Bitcoin is so volatile.
Also, the U.S. Supreme Court recently ruled in favor of cryptocurrency exchange Coinbase, putting two lawsuits against the company on hold. This was the first cryptocurrency decision by the court. Also, Dubai’s Court of First Instance recently said that salary payments made in cryptocurrency were valid. This shows that the UAE is changing how it deals with digital assets.
Even with these changes, BTC exchanges are still closely watched by regulators around the world. In the U.S., a federal court recently turned down Kraken’s request to throw out an SEC lawsuit. Since June 1, it has been illegal in Hong Kong to run a trading site for virtual assets without a license.
