Supreme Procuratorate Discloses 1.2 Million Yuan U-Currency Fraud Case, Prosecutor Claims It Does Not Constitute Contract Fraud

Recently, a U-currency fraud case was tried in Xuzhou, Jiangsu, where Wang and others defrauded the victim, Xiao, of 1.2 million yuan under the pretense of purchasing U-currency. The case was initially transferred for prosecution on suspicion of robbery, but the procuratorial authority believed that Wang and others' actions of using false transactions to substantively deceive the victim out of U-currency constituted fraud, and thus filed a public prosecution with the court. During the trial, the defense attorney argued that the defendants constituted contract fraud, asserting that whether the crime is classified as fraud or contract fraud would affect sentencing. The prosecutor pointed out that the criminal law stipulates that contract fraud is intended to maintain market order, and the contract content must reflect the attributes of a socialist market economy. Transactions involving virtual currencies are illegal financial activities explicitly prohibited by the state and do not fall within the scope of contract fraud regulation.

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