The UK Seeks to Keep $6.7B in Seized Bitcoin from Chinese Fraud Case
The UK authorities is attempting to retain over 61,000 Bitcoin, at present valued at round $6.7 billion, that was seized from a Chinese nationwide convicted in an enormous funding fraud case.
Key Takeaways:
- The UK is in search of to hold 61,000 BTC seized from a Chinese fraud case, now price $6.7 billion.
- Victims are pushing for compensation primarily based on present Bitcoin worth, not simply unique investments.
- Legal battles and market volatility may delay decision and impression the ultimate windfall.
The potential windfall stems from the conviction of Zhimin Qian and her Malaysian affiliate Seng Hok Ling, each of whom pleaded responsible to cash laundering fees in London earlier this 12 months.
$6.7B in Bitcoin Seized at London Mansion in 2018 Fraud Probe
The digital property had been first found in 2018 on gadgets seized at a luxurious mansion in Hampstead, north London, throughout an investigation into suspicious property purchases.
At the time, authorities had been unaware they’d stumbled upon what would develop into the UK’s largest-ever crypto seizure.
Qian, also referred to as Yadi Zhang, had funneled stolen investor funds from China into Bitcoin earlier than fleeing the nation and settling in the UK beneath a false identification.
Court paperwork reveal that Qian ran a fraudulent funding agency in China between 2014 and 2017, providing returns as high as 300%.
The scheme reportedly defrauded over 128,000 people, lots of whom are actually in search of compensation.
Lawyers for some victims argue that the Bitcoin ought to be returned at its present worth, not merely the unique sums invested, citing years of delay and the life financial savings many misplaced.
UK officers are debating what to do with the huge haul, according to a report from the Financial Times.
Some Treasury insiders have speculated the recovered crypto may cut back the fiscal burden in the upcoming Budget, however others warning that authorized proceedings may stretch into 2027.
The Office for Budget Responsibility doesn’t account for asset seizures in its fiscal forecasts, and crypto holdings will not be formally acknowledged as monetary property.
The subsequent civil listening to is predicted in January, with a High Court determination possible to be appealed. Meanwhile, Qian and Ling await sentencing in November.
UK authorities face one other problem: how to liquidate such a lot of Bitcoin with out inflicting a value shock.
With crypto markets notoriously unstable, the ultimate worth of the seized funds may fluctuate dramatically earlier than any decision.
As reported, bodily assaults concentrating on Bitcoin and crypto holders are rising at an alarming price, in accordance to new knowledge tracked by CASA co-founder Jameson Lopp.
Since late February, 35 new violent incidents have been reported globally, a 169% increase in just six and a half months.
The uptick provides to an already troubling pattern, as cryptocurrency markets proceed their bullish run.
In whole, 48 assaults have occurred to this point in 2025, marking a 33% improve over all of 2024. France alone has accounted for 14 of this 12 months’s reported incidents.
One of probably the most disturbing circumstances befell on September 6 in Cambridge, Canada, the place a younger man was kidnapped at gunpoint and compelled to switch funds right into a cryptocurrency pockets.
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