The Shanghai High People’s Court has issued a document in which it states that is subject to property rights laws and regulations. This was in connection to an October 2020 lawsuit in which a 1 Bitcoin loan had been recovered.BTC). The court lower recognized Bitcoin’s value, scarcity, disposition and thus being subject to property and fulfilling the definition virtual property.

According to Sina (NASDAQ)Website, Shanghai Baoshan District People’s Court ruled for plaintiff Cheng Mou and ordered defendant Shi Moumou return the Bitcoin. After the defendant refused to comply, the case was brought back to court. The mediation was held in May 2021. Because the defendant had lost possession of Bitcoin, both parties agreed to pay the defendant compensation at a reduced amount than the Bitcoin value at the time of loan.