Cha & Kwon Law Offices won a lawsuit claiming virtual assets and interest loaned to Company B on behalf of Company A, a virtual asset service provider (VASP).

Company A leased virtual assets to Company B, forming a contract to receive interest and the principal with the same type of virtual assets. Defendant B paid a portion of the interest to Company A for a certain period. However, the interest payment started to be delayed, and the principal was not returned until the payment period passed.

Defendant B argued that the interest rate of the virtual asset loan contract exceeded the maximum interest rate set by the Interest Limitation Act and the Act on Registration of Credit Business and Protection of Finance Users (“Credit Business Act”) in the first place. Accordingly, Company B argued that the portion of virtual assets paid as interest by Company B to Company A that exceeded the legal maximum interest rate should be regarded as partial repayment of the principal.

However, Cha & Kwon Law Offices argued that the Interest Limitation Act and the Credit Business Act regulate the maximum interest rate on monetary loans, and hence, “virtual asset loans” are not subject to the aforementioned laws.

The court accepted Cha & Kwon Law Offices’ argument, siding with the plaintiff. In addition, the court agreed and accepted the request by Cha & Kwon to order the defendant to repay with money converted based on the “market price of virtual assets at the conclusion of pleadings” in case compulsory execution on virtual assets is impossible.

Litigation related to virtual assets is an area where new legal principles are continuously being discussed as there have not been many precedents established. In order to win a lawsuit related to virtual assets, it is essential to consult with a legal expert who can adroitly solve issues on and related to virtual assets.

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.