Chinese court invalidates 2019 car sales using now worthless crypto tokens

Last week, a WeChat post post The Shanghai Fengxian Court’s recent ruling on a May 2019 car sale using digital currency began to circulate in the crypto world. At the time, the buyer (who was only identified as Mr. Huang) signed a sales contract to buy a 2019 Audi AL6 for 409,800 yuan ($59.477) in exchange for 1,281 units at an undisclosed car dealership in Shanghai. The consideration for Unihash (UNIH) tokens. According to the original contract, the seller should deliver the car to Huang within three months.

The Fengxian court in Shanghai said that Mr Huang paid 1,281 UNIH on the date of the contract, but did not receive the vehicle within and after the stipulated period. As a result, Huang took the seller to court, requiring the vehicle to be returned, and paid 0.66% of the transaction amount as compensation for the undelivered vehicle within the original deadline.

The case took more than three years to reach a judgment in June this year. The citation regulation of September 2017 evolved into what is now called China’s cryptocurrency banThe Shanghai Fengxian Court stated that digital assets “cannot and should not be used as currency in the market”, and the use of digital tokens such as UNIH as consideration in daily contracts instead of legal tender violates corresponding regulations that go beyond such contracts themselves. Therefore, the sales contract was ruled invalid. The buyer was neither compensated nor delivered the car nor refunded his 1,281 UNIH.

It is not clear how the seller initially agreed to the exchange rate of 1 UNIH = CNY 320 stipulated in the original contract. Unihash is said to be a digital payment token developed for e-commerce in 2018, only for private investors and without a public ICO.Shortly after launch, allegations were swift surfaced The project was labelled a “scam” on Chinese social media, and its token metrics, as well as the company’s history, were allegedly heavily inflated to attract investors.

Currently, the project appears to be abandoned, with no social links, no listing, and no further development activity.Furthermore, the company behind UNIH has achieved nothing list in its original white paper. One of the promises made to investors in the filing included: “It is certain that the Unihash token could appear on multiple exchanges in the fourth quarter of 2019.”