BlockBeats News, May 11th. The People's Court of Gulou District, Fuzhou City, China recently concluded a case involving a trust fund dispute. Investor Mr. Chen participated in a foreign exchange wealth management scheme through intermediary Mr. Liu, investing 480,000 yuan. The funds were actually converted to USDT and transferred to an overseas trading platform for investment, which ultimately 'shut down,' resulting in a huge loss. The court determined that this transaction formed a complete loop of "receive RMB → exchange to USDT → cross-border transfer → foreign exchange trading," clearly using cryptocurrency as a medium to indirectly conduct foreign exchange transactions, suspected of disrupting financial order, and ruled to dismiss the lawsuit and refer the case to the public security organ for further action.

The case revealed that from October 2023 to April 2024, Mr. Chen met Mr. Liu through a referral, and the latter promised a "high return, quick break-even" foreign exchange wealth management project. Mr. Chen made a total of 480,000 yuan in transfers, which Mr. Liu promptly exchanged for USDT and transferred to an overseas platform for investment. During the trial, Mr. Liu revealed that he had helped dozens of investors with fund transfers and trading, involving millions of yuan.

The Gulou Court held that such actions that utilize USDT and other cryptocurrencies to achieve the exchange of RMB and foreign currency value, intentionally bypassing foreign exchange regulations, constitute illegal financial activities. These actions not only violate public order and good customs but may also pose systemic financial risks. Both Mr. Chen and Mr. Liu appealed the first-instance ruling. The Fuzhou Intermediate Court rejected the appeal and upheld the original judgment.