UK Court Ruling Strengthens Government Claim to $5 Billion in Seized Bitcoin

A London court has dealt a blow to thousands of Chinese fraud victims seeking 61,000 seized bitcoin, now worth roughly £3.8 billion ($5 billion). The High Court ruled Monday that Chinese law, not English law, governs their property claims, since the entire scheme unfolded in China.

Zhimin Qian Bitcoin Ponzi Scheme Case

The coins were confiscated by the Metropolitan Police during its probe of Zhimin Qian, who admitted running a Ponzi operation through her company, Tianjin Lantian Gerui Electronic Technology. Between 2014 and 2017 she swindled over 128,000 investors, converted the money into bitcoin, and fled to Britain.

Judge Rules Fraud Occurred Entirely in China

Victims had hoped English law would grant them property rights over the fortune. Mr Justice Mark Turner disagreed, noting the victims parted with their money in China, the fraudulent representations were made there, and the economic harm was suffered there.

Victims Appeal Decision on Seized BTC

The ruling doesn’t settle who ultimately keeps the coins, but it narrows recovery paths and improves the Treasury’s chances of holding them. Lawyers for the victims plan to appeal, and the Crown Prosecution Service said a further hearing will test whether any claimant can establish an interest.

Meanwhile, the US has already formalized seized crypto through its strategic bitcoin reserve, with government-linked addresses holding $25.8 billion in digital assets.