Chinese prosecutors are moving to confiscate more than 61,800 Bitcoin tied to a $5.7 billion fraud scheme — one of the largest crypto seizures in history — days after a UK court ruled that Chinese law governs the victims’ claims to the coins.
The $5.7 Billion Scheme
The case centers on Qian Zhimin, the alleged controller of Tianjin Lantian Gree Electronic Technology. Prosecutors say that from 2014 to 2017, the company sold unlicensed wealth-management products across China promising guaranteed principal and high returns, raising more than 40 billion yuan (about $5.7 billion) from over 102,000 investors, who lost nearly 20 billion yuan. The money was allegedly used to repay earlier investors, fund fake projects, and buy Bitcoin, property, cars, and jewelry instead of real businesses.
Qian fled China in 2017 and later settled in the UK, where British authorities seized his assets — including the 61,800-plus Bitcoin alongside other cryptocurrencies, cash, jewelry, and investment holdings.
Why the UK Ruling Matters
On October 12, High Court Justice Mark Turner ruled that claims to the seized Bitcoin must be resolved under Chinese law, since the investments were made and the fraud occurred in China. The distinction is worth billions: under English law, victims could claim ownership of the Bitcoin itself, including its huge appreciation in value; under Chinese law, compensation may be limited to their original investments plus interest. Around 16,000 Chinese victims have since won permission to appeal the ruling.
Two Countries, One Wallet
Meanwhile in China, a Tianjin court has accepted the prosecutors’ confiscation application — covering 61,896 BTC plus other assets — and opened a six-month window for victims to join the proceedings. With UK and Chinese courts now moving in parallel over the same coins, the fate of the fortune — victims or the UK Treasury — is far from settled. Also Read: More Money & Life
Source: CoinDesk — read the full story there.