February 22, 2023SandboxgameblockchainXiao, an operator of a hotel in Pengshui County, Chongqing, was sentenced to probation for the crime of accommodating and introducing prostitution. In the incident, Shi, a prostitute, went to the platform to avoid police rounds after Xiao reported the news, and unfortunately died. Shi's family then filed a lawsuit with the court, demanding compensation totaling more than 1.51 million yuan from Xiao and the hotel involved. On April 27, 2024, after two trials by the court, the family of the deceasedSandboxgameblockchainDonovan's claim was dismissed.

Xiao introduced prostitutes to Shi in the hotel he operated and agreed to share them. In a police ward round, Xiao informed Shi to avoid, Shi went to the roof, five days later was found dead, in line with the characteristics of high fall injury. Xiao was given a suspended sentence for failing to report to the police and committing illegal acts. Shi's parents and Xiao had reached a mediation agreement, Xiao paid 60,000 yuan for burial expenses, but Shi's family thought there should be more compensation.

The family thought that Xiao's fault led to Shi's death and asked for compensation for death, living expenses of the dependant, consolation for mental damage, and so on. However, after the trial, the people's Court of Pengshui County held that Shi's evasion behavior was illegal, the security obligations of the hotel were not applicable to illegal acts, and Xiao's tip-off had no direct causal relationship with Shi's death. Therefore, the court rejected the family's claim at first instance.

Shi's family refused to accept the judgment of the first instance and filed an appeal, but the court of second instance upheld the original verdict. The court held that Xiao invited Shi to engage in illegal activities does not constitute a legal partnership, Shi's unfortunate death should be held responsible by himself, Xiao and the hotel do not bear tort liability. Finally, in the second instance judgment of February 28, 2024, the fourth Intermediate people's Court of Chongqing rejected Shi's family's appeal again.