A woman implicated in a massive Chinese investment scam valued at $5.1 billion has granted authorities access to an additional $67 million in cryptocurrency stored on a concealed device. Prosecutors revealed that these digital assets will be allocated to a restitution fund aimed at compensating approximately 128,000 defrauded Chinese investors whose losses occurred between 2014 and 2017.
Zhimin Qian, also known by the alias Yadi Zhang, admitted guilt last month to charges involving possession and transfer of illicit property during the initial day of her trial at Southwark Crown Court. Following her plea, she consented to surrender all her Bitcoin holdings.
The initial seizure of $5.1 billion in Bitcoin took place after police conducted raids in 2018 at her six-bedroom rented residence near Hampstead Heath in North London. This discovery sparked a diplomatic dispute between the UK and China regarding jurisdiction over the assets.
In recent interviews conducted in prison, Qian provided authorities with access credentials for an additional device, along with passwords for two digital wallets containing $67 million in Bitcoin and Ripple cryptocurrency. This newly uncovered cache has been combined with the original Bitcoin reserve. Reports indicate that Chancellor Rachel Reeves intends to utilize these funds to help address gaps in public finances.
Meanwhile, Stephen Parkinson, the Director of Public Prosecutions, is working to establish a compensation framework for the victims of the fraud. At the time the scam was exposed in early 2017, Bitcoin was valued at roughly $750 per coin, soaring to an unprecedented $94,000 this month.
William Glover, a lawyer from Fieldfisher, emphasized the human toll of the scheme, stating, “Many victims lost their entire life savings, with a significant number being elderly or vulnerable. They have been deprived of their assets for nearly a decade and deserve to reclaim their property from the Bitcoin frozen within this jurisdiction.” He further clarified that the frozen cryptocurrency does not belong to the UK government, which lacks the authority to dispose of it without respecting the victims’ legal rights.
Last year, the Crown Prosecution Service issued a formal notice to those affected by the Lantian Gerui fraud, confirming a property freezing order enacted on December 18, 2023, under the Proceeds of Crime Act. This order remains active, preventing any dissipation of the assets until civil recovery proceedings conclude or the High Court issues a new directive.
Qian orchestrated the scam by enticing Chinese investors to pour funds into fraudulent wealth management schemes, which were then covertly converted into Bitcoin. She escaped China using forged documents and entered the UK, where in September 2018 she attempted to launder the illicit proceeds through real estate purchases, aided by an accomplice named Jian Wen.
The Metropolitan Police only realized the seized devices contained Bitcoin in 2021, by which time Qian had already disappeared. This case is believed to represent the largest Bitcoin seizure ever conducted by law enforcement.
Qian was not formally charged until April 2024, following her arrest in York. She had previously operated under the radar as the head of Tianjin Lantian Gerui Electronic Technology, a Chinese company established in March 2014. The firm marketed investment products promising returns as high as 300%, but in truth, Qian was diverting investor funds into Bitcoin for personal gain.
Will Lyne, Head of the Met’s Economic and Cybercrime Command, acknowledged the critical role of international cooperation, stating, “With assistance from Chinese authorities, we gathered compelling evidence tracing the criminal origins of the crypto assets Qian sought to launder in the UK. My sympathies go out to the thousands of victims affected by this scheme. Today’s developments underscore the Met’s steadfast dedication to delivering justice.”
Jian Wen was convicted of money laundering and sentenced to six years in prison in 2014.
0 Comments