Winning the Lawsuit on Virtual Asset Claim

On behalf of Company A, a supplier of virtual asset services, Cha & Kwon Law Offices made successful results from a lawsuit to recover virtual assets and interest that were loaned to Company B (VASP).

In order to construct a contract to receive interest and the principle with the same kind of virtual assets, Company A leased virtual assets to Company B. For a specific time, Defendant B gave Company A a share of the interest. The principle was returned following the end of the payment term, but the interest payment started to be late.

The virtual asset loan contract’s interest rate, according to defendant B, was initially higher than the maximum allowed by the Interest Limitation Act and the Act on Registration of Credit Businesses and Protection of Finance Users (“Credit Business Act”). Company B thus asserted that the amount of virtual currency paid by Company B to Company A as interest that exceeded the legal maximum interest rate should be seen as a component of the principal.

Cha & Kwon Law Offices countered that since “virtual asset loans” are exempt from the Interest Limitation Act and the Credit Business Act, which limit the maximum interest rate on monetary loans.

The court sided with the plaintiff, accepting Cha & Kwon Law Offices’ defense. In addition, the court granted Cha & Kwon’s request that, in the event that compulsory execution on virtual assets cannot be carried out, the defendant be ordered to repay with money that has been converted based on the “market price of virtual assets at the completion of pleadings.”

Since there are few proven precedents in the domain of litigation involving virtual assets, new legal theories are always being debated. It is crucial to consult with a legal professional who can deftly resolve difficulties on and linked to virtual assets in order to win a lawsuit involving them.

Consult with Cha & Kwon Law Offices to better navigate the legal proceedings with experts who have a wealth of legal research and experience on virtual assets.

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