A Chinese tech worker who refuses to be paid in Tether (USDT) and insists on receiving fiat yuan has won a lawsuit against his former employers.
According to the Workers’ Daily, a branch of the People’s Court in Chaoyang District, Beijing heard a civil case involving a now-defunct IT company and a former contract employee the court just named him Shen (his last name).
Shen signed with the company in June 2019 and worked with the unnamed company for over a year. After Shen submitted his resignation on June 16, 2020, the two main shareholders (who remain anonymous) asked Shen to stay on until a project was completed. He agreed and eventually left the company in October, the court heard.
But complications arose when he left the company – and was not paid for October. Furthermore, the company did not pay Shen’s salary, target performance-related bonuses, annual performance bonuses, and bonuses. overtime pay during his time with the company (from May 20, 2019 to October 17, 2020).
Shen testified that he owed a total of more than $40,000.
After some back and forth, the shareholders finally agreed to pay Shen the amount he was due, but attempted to do so by paying him in USDT. Shen declined this offer and demanded to be paid in CNY.
Entire legislation has been put in place in an attempt to counter Shen’s claims:
- Article 50 of the Labor Law of the People’s Republic of China provides that wages must be paid to workers “in the form of monthly currency”;
- Article 5 of the Interim Payroll Regulations states that wages “must be paid in fiat currency, and not in kind or by the use of securities rather than currency”;
- Article 16 of the Law of the People’s Republic of China on the People’s Bank of China provides that “the legal bid of the People’s Republic of China is the renminbi [yuan].”
Furthermore, an ordinance issued last year by the central bank and leading financial regulators explained that “virtual currencies do not have the same legal status as legal tender” and that tokens Notices such as “bitcoin (BTC), ethereum (ETH) and tether are not legal compensation, and” should not and cannot be used as currency. “
Despite the fact that the case predates last year’s ruling, all other laws apply before 2019, the court noted – ultimately ruling in Shen’s favor. The presiding judge ordered the former shareholders to pay Shen the amount he owed in yuan.