China Moves to Confiscate 61,800 Bitcoin Linked to a $5.7 Billion Fraud Case

Chinese prosecutors are asking a court to confiscate more than 61,800 Bitcoin connected to a fraud worth over 40 billion yuan, about $5.7 billion. The case centers on Qian Zhimin, the alleged controller of Tianjin Lantian Gree Electronic Technology. Between 2014 and 2017, the company allegedly sold unlicensed wealth-management products nationwide, promising guaranteed principal and high returns. It collected more than 40.378 billion yuan from over 102,000 investors, who lost close to 20 billion yuan. Prosecutors say the money went to repay earlier investors, fund fake projects, and buy Bitcoin, property, cars and jewelry rather than real businesses.

UK Seized Assets and Court Rulings on Bitcoin Ownership

Qian left China in 2017 and later settled in the UK, where authorities seized his assets. These include the Bitcoin, plus Bitcoin Cash, Bitcoin Gold, Bitcoin SV, XRP, Dogecoin, cash, jewelry and investment holdings. On Oct. 13, the Tianjin Second Intermediate People’s Court accepted the request to confiscate the assets as illegal gains and opened a six-month window for victims and other interested parties to join the case. Victims who stay out can still seek refunds from recovered assets.

UK High Court Says Chinese Law Applies

Days earlier, the UK High Court ruled that Chinese law, not English law, should govern victims’ claims to the coins seized in Britain. The decision does not close the door on recovery, since the court must still assess whether victims hold a property claim under Chinese law, with more hearings expected. Lawyers for some victims plan to appeal. The case is among China’s largest alleged crypto-linked frauds, and the Bitcoin could now be worth far more than at the time of seizure.