Key Takeaways
- • Chinese prosecutors have moved to confiscate more than 61,800 BTC, along with over 72,700 Bitcoin Cash, more than 3.6 million XRP and other tokens, tied to a 40.38 billion yuan (about $5.7 billion) investment fraud, according to a Tianjin No. 2 Intermediate People's Court announcement reported by Yicai.
- • The scheme, run through Tianjin Lantian Gerui Electronic Technology between April 2014 and August 2017, drew more than 102,000 investors who suffered combined losses exceeding 19.9 billion yuan.
- • The Chinese court accepted the case on Sept. 28 and opened a six-month window for victims and other interested parties to join the confiscation proceedings.
- • A UK High Court judgment dated Oct. 12 ruled that Chinese law governs victims' ownership claims, but who is legally entitled to the seized Bitcoin remains unresolved, with roughly 16,000 victims reportedly in the British recovery proceedings.
- • Qian Zhimin, who fled China in 2017, was sentenced to 11 years and eight months at Southwark Crown Court on Nov. 11 after pleading guilty to money laundering.
Summary
Chinese prosecutors have moved to confiscate more than 61,800 Bitcoin and other assets linked to a 40.38 billion yuan ($5.7 billion) investment fraud involving Qian Zhimin, who is serving a prison sentence in the UK. According to Chinese financial outlet Yicai, the Tianjin No. 2 Intermediate People's Court announced on Oct. 13 that it had accepted an application to recover assets obtained through an illegal fundraising scheme operated between 2014 and 2017. The court formally accepted the case on Sept. 28 and opened a six-month period for affected investors and other interested parties to participate in the proceedings.
The confiscation request concerns assets accumulated through Tianjin Lantian Gerui Electronic Technology, a company controlled by Qian. From April 2014 to August 2017, the company allegedly raised 40.378 billion yuan through unlicensed wealth management products that promised guaranteed principal repayments and unusually high returns, with some products advertised at returns of up to 300%. Prosecutors said much of the money was used to repay existing investors, finance fictitious projects and buy cryptocurrency, real estate, vehicles and luxury goods. Besides more than 61,800 BTC, the identified assets include over 72,700 Bitcoin Cash, more than 3.6 million XRP, and holdings of Bitcoin Gold, Bitcoin SV and Dogecoin. Investors who do not join the current proceedings will retain their eligibility to receive compensation from recovered assets.
Qian fled China in July 2017 carrying a computer with access to cryptocurrency wallets and later entered Britain using a St. Kitts and Nevis passport under the name Yadi Zhang. British investigators began tracing the funds in 2018, and Metropolitan Police searches of a London property and a safe deposit box in October and November that year recovered devices and private keys providing access to substantial Bitcoin holdings. Qian was arrested in April 2024. Her associate Jian Wen received a six-year, eight-month sentence in 2024 for laundering cryptocurrency linked to the fraud. Qian pleaded guilty to money laundering in September 2025 and was sentenced to 11 years and eight months at Southwark Crown Court on Nov. 11.
In the UK, the ownership dispute remains before the courts. In an Oct. 12 judgment, High Court Justice Mark Turner ruled that Chinese law should govern the underlying ownership claims brought by victims, finding that the original investment transactions, alleged wrongdoing and Bitcoin purchases took place in China. The ruling did not determine whether individual investors are entitled to the Bitcoin or whether recovery should include gains from its subsequent appreciation. Applicants must still establish a legal ownership interest under Section 281 of the Proceeds of Crime Act 2002. Lawyers for some victims are pursuing an appeal, and further hearings are expected on the application of Chinese law and the evidence for individual claims. British prosecutors are separately pursuing civil recovery of the seized assets, with the High Court yet to decide the competing claims.
The confiscation request concerns assets accumulated through Tianjin Lantian Gerui Electronic Technology, a company controlled by Qian. From April 2014 to August 2017, the company allegedly raised 40.378 billion yuan through unlicensed wealth management products that promised guaranteed principal repayments and unusually high returns, with some products advertised at returns of up to 300%. Prosecutors said much of the money was used to repay existing investors, finance fictitious projects and buy cryptocurrency, real estate, vehicles and luxury goods. Besides more than 61,800 BTC, the identified assets include over 72,700 Bitcoin Cash, more than 3.6 million XRP, and holdings of Bitcoin Gold, Bitcoin SV and Dogecoin. Investors who do not join the current proceedings will retain their eligibility to receive compensation from recovered assets.
Qian fled China in July 2017 carrying a computer with access to cryptocurrency wallets and later entered Britain using a St. Kitts and Nevis passport under the name Yadi Zhang. British investigators began tracing the funds in 2018, and Metropolitan Police searches of a London property and a safe deposit box in October and November that year recovered devices and private keys providing access to substantial Bitcoin holdings. Qian was arrested in April 2024. Her associate Jian Wen received a six-year, eight-month sentence in 2024 for laundering cryptocurrency linked to the fraud. Qian pleaded guilty to money laundering in September 2025 and was sentenced to 11 years and eight months at Southwark Crown Court on Nov. 11.
In the UK, the ownership dispute remains before the courts. In an Oct. 12 judgment, High Court Justice Mark Turner ruled that Chinese law should govern the underlying ownership claims brought by victims, finding that the original investment transactions, alleged wrongdoing and Bitcoin purchases took place in China. The ruling did not determine whether individual investors are entitled to the Bitcoin or whether recovery should include gains from its subsequent appreciation. Applicants must still establish a legal ownership interest under Section 281 of the Proceeds of Crime Act 2002. Lawyers for some victims are pursuing an appeal, and further hearings are expected on the application of Chinese law and the evidence for individual claims. British prosecutors are separately pursuing civil recovery of the seized assets, with the High Court yet to decide the competing claims.
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