USDT "Forex Savings" Investment Goes Bust, Fujian Court Rejects Plaintiff's Lawsuit, Case Transferred to Police

**May 11 Update** Fuzhou’s Gulou District People’s Court recently wrapped up a trust dispute case tied to an illegal foreign exchange scheme. Investor Chen invested RMB 480,000 in a foreign exchange wealth management program via intermediary Liu. The funds were converted to USDT, transferred to an overseas trading platform that later shut down, and resulted in heavy losses. The court ruled the transaction formed a full cycle: *receive RMB → convert to USDT → cross-border transfer → foreign exchange trading*. It clearly used cryptocurrency as a tool to indirectly conduct foreign exchange transactions, suspected of disrupting financial order. The court dismissed Chen’s lawsuit and referred the case to public security for further investigation. **Case Details** Between October 2023 and April 2024, Chen was introduced to Liu, who pitched a "high return, quick break-even" foreign exchange program. Chen transferred 480,000 yuan total—funds Liu quickly converted to USDT and sent to an overseas platform. At trial, Liu admitted he’d assisted dozens of investors with transfers and trades, totaling millions of yuan. **Court Ruling Context** The Gulou Court noted that using USDT and other cryptocurrencies to exchange RMB and foreign currency values while intentionally evading foreign exchange regulations constitutes illegal financial activity. These actions violate public order and good morals and may pose systemic financial risks. Both Chen and Liu appealed the lower court’s ruling. The Fuzhou Intermediate Court denied the appeal and upheld the original decision.