A Bitcoin loan gone sour has resulted in a hefty price tag for one Canadian man. Here’s the full story.
The Supreme Court of British Columbia has ordered Daniel Tambosso to repay $1.2 million to Hung Nguyen, bringing an end to a contentious legal battle over a loan of 22 Bitcoin (BTC) that Tambosso borrowed from Nguyen in September 2021.
Justice Fitzpatrick ruled in favor of Nguyen, awarding him $1,240,106.22 in damages, along with court-ordered interest on that amount dating back to September 24, 2021.
The story began in September 2021, when Nguyen, through a mutual friend, met Tambosso, who expressed a need for Bitcoin to support a business initiative. On September 21, 2021, with their lawyers present, Nguyen lent Tambosso 18 BTC.
However, just after the initial transfer, Tambosso requested an additional 7.5 BTC, and Nguyen agreed to lend him 4 BTC the following day. The loan was to be repaid within 48 hours, but that repayment never occurred.
The court emphasized that regardless of the success or failure of Tambosso’s venture, the terms of the agreement required him to return the original 22 BTC to Nguyen. The judge described the case as an “old-fashioned cause of action” with a “modern twist,” referring to the fact that the loan was made in Bitcoin.
This case is part of a growing trend in court rulings that recognize and enforce cryptocurrency transactions, according to the latest crypto news.
For example, on August 30, a court allowed the Bitcoin mining firm Rhodium Enterprises, which had filed for bankruptcy, to take a loan in either U.S. dollars or Bitcoin—an unusual decision given Bitcoin’s price volatility.
In another significant development, the United States Supreme Court ruled in favor of cryptocurrency exchange Coinbase on June 23, 2023, halting court proceedings against the company in two California cases. This was the first cryptocurrency-related ruling by the U.S. high court.
Additionally, on August 16, the Dubai Court of First Instance made a landmark decision by recognizing salary payments in cryptocurrency as valid under employment contracts, signaling a shift in the United Arab Emirates’ approach to crypto.
Despite the increasing acceptance of cryptocurrencies in legal settings, regulatory bodies remain vigilant. For instance, on August 23, a U.S. federal court denied crypto exchange Kraken’s attempt to dismiss an SEC lawsuit accusing it of operating an unregistered securities exchange.
Similarly, in Hong Kong, running an unlicensed virtual asset trading platform has been a criminal offense since June 1, with several exchanges still awaiting full licenses or withdrawing their applications altogether.
