JAKARTA - Last week, a WeChat post published by the Shanghai Fengxian Court began circulating in crypto circles in light of its recent ruling on the sale of a car in May 2019 made using the digital currency.
At the time, the buyer, identified only as Mr Huang, signed a sales contract to purchase a 2019 Audi AL6 for CNY 409.800 (IDR 879 million) in exchange for consideration of 1.281 Unihash tokens (UNIH) with an undisclosed car dealer in Shanghai. Under the original contract, the seller had to deliver the car to Huang within three months.
According to the Shanghai Fengxian Court, Mr. Huang paid 1.281 UNIH on the date of signing the contract but did not receive the car within the stipulated timeframe or thereafter.
As a result, Huang took the seller to court, demanding delivery of the vehicle and daily interest payments of 0.66% of the transaction amount as compensation for each day so that the car was not delivered beyond the original deadline.
The case will take more than three years before a verdict is reached this June. Citing regulations in September 2017 that evolved into what is now known as China's cryptocurrency ban, the Shanghai Fengxian Court said that digital assets "cannot and should not be used as currency for circulation in the market."
That the use of such digital tokens as UNIH in lieu of paper money as a consideration in day-to-day contracts violates the respective regulations that override the contract itself.
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Therefore, the sales contract was declared null and void. The buyer is not given compensation, car delivery, or a refund of his 1.281 UNIH.
It is not clear how the seller agreed to the conversion rate of 1 UNIH = CNY 320 as stipulated in the original contract. Unihash is supposed to be a digital payment token developed for e-commerce in 2018.
This coin is only available to private investors without a public initial coin offering. Shortly after its launch, accusations quickly surfaced on Chinese social media calling the project a "scam" and its token metrics, as well as the company's history, are alleged to have been inflated to attract investors.
Currently, the project appears to be left with no links to social events, no marketplace listings, and no further development activity. In addition, the company behind UNIH did not achieve any of the goals listed in its original whitepaper.
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