A court in Xuzhou, Jiangsu province, recently heard a fraud case involving 1.2 million yuan ($168,000) in USDT (U coins). Defendants Wang and others defrauded victim Xiao under the guise of purchasing USDT. The case was initially transferred for prosecution on suspicion of snatching, but procurators reclassified it as fraud after determining the defendants set up a deliberate trap using a fake transaction as bait. During trial, the defense argued the conduct constituted contract fraud rather than standard fraud—a distinction carrying significantly different sentencing outcomes. The prosecutor countered that contract fraud exists to protect market order and requires contracts reflecting legitimate socialist market economy attributes. Since virtual currency transactions are explicitly prohibited illegal financial activities in China, they fall outside the scope regulated by contract fraud statutes.