A recent decision by the Supreme Court of British Columbia has set a significant precedent by ordering Daniel Tambosso to repay $1.2 million to Hung Nguyen for a Bitcoin loan taken in September 2021. This ruling ends a heated legal battle over a loan of 22 Bitcoin (BTC) provided by Nguyen to Tambosso. Justice Fitzpatrick decreed, “Mr. Nguyen is awarded damages against Mr. Tambosso for $1,240,106.22, plus court-ordered interest from September 24, 2021.”

The dispute began when Nguyen loaned Tambosso 18 BTC on September 21, 2021, followed by an additional 4 BTC the next day, after Tambosso urgently requested more funds. The total loan was to be repaid within 48 hours, regardless of whether Tambosso’s venture succeeded. However, the repayment never materialized, prompting Nguyen to take the matter to court.

The case, which Justice Fitzpatrick described as “an old-fashioned cause of action with a modern twist,” highlights the increasing presence of cryptocurrency in legal matters. The judgment underscores that even in the crypto realm, contracts must be honored, with courts treating digital assets like traditional currencies.

This ruling reflects a growing trend of judicial systems adapting to the evolving digital landscape. Recent court decisions worldwide show increasing support for cryptocurrencies. For instance, the United States Supreme Court recently ruled in favor of Coinbase, while Dubai’s courts recognized salary payments in crypto under employment contracts.

However, authorities are also tightening regulations to protect users. A U.S. court recently denied Kraken’s motion to dismiss an SEC lawsuit, and in Hong Kong, operating an unlicensed crypto platform has become a criminal offense. As courts increasingly engage with digital currencies, the landscape of crypto regulation and acceptance continues to evolve.