China Moves to Confiscate $5 Billion in Bitcoin From Fraudster Who Fled to UK: Report
Chinese authorities are moving to confiscate nearly 62,000 bitcoins worth $5 billion linked to a major fraud case, after the UK High Court ruled Chinese law applies to ownership disputes.
Prosecutors allege that Qian Zhimin, the alleged controller of Tianjin Lantian Gerui Electronic Technology, orchestrated a nationwide fraud from 2014 to 2017, selling fake wealth management products without regulatory approval and promising guaranteed returns. The scheme raised RMB 40.3 billion ($2.8 billion), with Qian allegedly using investors' cash to pay off earlier participants while channeling funds into bitcoin holdings, property, cars, and jewelry.
When the scheme unraveled in July 2017, Qian fled to the UK carrying computers with bitcoin wallets. British authorities seized approximately 61,900 BTC along with other assets. The recent UK High Court ruling that Chinese law applies to ownership disputes has now paved the way for China's confiscation efforts.
Legal Battle
The coins have significantly appreciated since 2017, and the applicable law determines whether victims share in those gains. The UK's Crown Prosecution Service states victims may recover losses through China's compensation mechanism, though Fieldfisher law firm representatives are considering an appeal. Further hearings will determine victims' entitlement to the assets.
Victims can register to participate in asset recovery proceedings through a WeChat platform, with a six-month notice period before the formal trial begins.
Crypto Regulation
China maintains some of the world's strictest cryptocurrency regulations, having banned digital asset trading and bitcoin mining in 2021. The case highlights the government's continued enforcement against crypto-related financial crimes despite these prohibitions.
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