Chinese Fraud Victims Lose Court Battle Over 61,000 Seized Bitcoin

Thousands of Chinese investors hit by a massive fraud have suffered a legal setback in London. The High Court decided Monday that their claims to 61,000 seized Bitcoin must be judged under Chinese law instead of English law, removing a route that could have granted direct ownership of the assets.

Zhimin Qian Fraud Scheme Timeline

The coins were tied to an investment scheme run by Zhimin Qian between 2014 and 2017, with British authorities seizing them during a money-laundering investigation. Justice Mark Turner reasoned that the damage, payments and contracts all occurred in China, so Chinese legal standards must decide whether property rights exist.

Victims Challenged Compensation Arrangement

The claimants had pushed back against a compensation deal linked to a Chinese redress scheme, fearing British authorities would keep most of Bitcoin’s price gains. More than 128,000 investors were reportedly affected, with one law firm representing about 5,700 victims.

Appeal Planned in Seized Bitcoin Case

Fieldfisher, representing the claimants, plans to appeal. The case stays in London, where the next phase will feature expert testimony on Chinese law to test ownership claims. The Crown Prosecution Service confirmed a further hearing will assess whether any victim holds a valid interest. The seized stash is now worth over $5 billion.