$1.2M Bitcoin Loan Ordered for Repayment

The Supreme Court of British Columbia has finally resolved a contentious disagreement about a loan of 22 Bitcoin (BTC) that defendant Daniel Tambosso

A Canadian court has ordered Daniel Tambosso to repay Hung Nguyen $1.2 million in Bitcoin (BTC) after a contentious loan dispute, setting a significant legal precedent in cryptocurrency cases, Cointelegraph reported.

The Supreme Court of British Columbia has ruled that Tambosso must refund Nguyen for the 22 BTC loan he borrowed in September 2021, according to the report.

"Mr. Nguyen is awarded damages against Mr. Tambosso in the amount of $1,240,106.22,” the court document reportedly reads. “Mr. Nguyen is also awarded court order interest on the above amount from September 24, 2021," as per Justice Fitzpatrick's ruling.

Bitcoin loan agreement sparked by project

Nguyen reportedly met Tambosso through a mutual acquaintance in September 2021, learning that Tambosso needed to borrow BTC for a project he was working on.

Facilitated by their lawyers, Nguyen loaned 18 BTC to Tambosso on Sep. 21, 2021. Shortly after the funds were transferred, Tambosso allegedly contacted Nguyen again, requesting an additional 7.5 BTC.

Nguyen agreed to loan Tambosso four more BTC on Sep. 22, 2021, and the total debt was expected to be repaid within 48 hours.

Court orders 22 BTC to be returned

The judgment reportedly stated that Tambosso was obligated to return the original 22 BTC to Nguyen as per the terms of the agreements, regardless of the success or failure of his project.

The judge noted that it was an "old-fashioned cause of action" with "a modern twist," as the loan had to be repaid in BTC.

Courts increasingly rule in favor of cryptocurrencies

Several recent favorable court rulings on cryptocurrencies have highlighted the growing acceptance and utilization of the asset class.

In a split decision on June 23, 2023, the United States Supreme Court allowed two separate California class-action lawsuits against cryptocurrency exchange Coinbase to proceed. This marked the first-ever decision by the U.S. top court on cryptocurrencies.

Dubai court rules on crypto salary payments

On Aug. 16, the Dubai Court of First Instance ruled that salary payments in cryptocurrencies are legal under employment contracts, in a major development for cryptocurrency legal treatment in the United Arab Emirates.

Hong Kong, for instance, has made it illegal to operate a virtual asset trading platform (VATP) without a license since June 1.