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China seeks to seize 61,800 BTC tied to $5.7 billion fraud scheme
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Chinese prosecutors are seeking to confiscate more than 61,800 Bitcoin tied to an alleged 40 billion yuan fraud, about $5.7 billion. The Tianjin Second Intermediate People’s Court accepted the confiscation request on Oct. 13. The court opened a six-month window for victims and other interested parties to join the case.
The case centers on Qian Zhimin, alleged controller of Tianjin Lantian Gree Electronic Technology. Prosecutors say the company sold unlicensed wealth-management products across China from 2014 to 2017. It promised guaranteed principal and high returns to investors.
The scheme raised more than 40.378 billion yuan from over 102,000 investors, prosecutors allege. Victims lost nearly 20 billion yuan. Prosecutors say funds were used to repay earlier participants, run fake projects, buy Bitcoin, and acquire property, cars and jewelry.
Qian fled China in 2017 and later settled in the United Kingdom. British authorities seized his assets, including more than 61,800 Bitcoin plus bitcoin cash, bitcoin gold, bitcoin SV, ripple, dogecoin, cash, jewelry and investment holdings. The Bitcoin stash may now be worth far more than when seized.
The move follows a U.K. High Court ruling that Chinese law, not English law, should govern alleged victims’ claims to the coins seized in Britain. The ruling does not guarantee recovery. It requires assessment of whether victims have a property claim under Chinese law, with further hearings expected.
Lawyers for some victims are seeking to appeal the U.K. decision, according to the report. The Chinese court has said victims who do not join the confiscation case can still seek refunds from recovered assets. The dual proceedings highlight complex cross-border questions over crypto-linked fraud.
The case is one of China’s largest alleged crypto-linked frauds. It could shape how courts handle victim claims when seized digital assets span multiple jurisdictions. Further hearings in both countries are expected.
