UK Court Rules Chinese Law Controls $5B Bitcoin Fraud Claim: What It Means for Victims
A British High Court ruling has dealt a significant setback to Chinese fraud victims seeking ownership of more than 61,000 bitcoin seized by London police. The cryptocurrency haul, now worth approximately $5 billion, originated from an enormous Ponzi scheme orchestrated by convicted fraudster Zhimin Qian. The Oct. 12 decision places Chinese law at the center of the ownership dispute, complicating victims’ efforts to reclaim the appreciated assets.
The Bitcoin Seizure and the Fraudster
Zhimin Qian, also known as Yadi Zhang, orchestrated approximately 10 fraudulent investment schemes in China between 2014 and 2017. Operating through Tianjin Lantian Gerui Electronic Technology Co. Ltd. and related entities, Qian collected approximately 40.2 billion yuan, equivalent to roughly £4.1 billion, from investors. Court records identify at least 128,409 investment contracts.
Qian purchased more than 100,000 BTC through an exchange account she controlled before fleeing China in July 2017. She subsequently entered Britain under an assumed identity.
Metropolitan Police officers searched properties connected to Qian and associate Jian Wen on Oct. 31 and Nov. 1, 2018. Investigators confiscated electronic devices, wallet credentials, and other assets connected to more than 61,000 BTC.
The Ownership Question
Thousands of investors pursued claims under Section 281 of Britain’s Proceeds of Crime Act 2002, arguing that portions of the recovered bitcoin legally belonged to them. The critical question was whether they held a proprietary interest — direct ownership — in the seized bitcoin or merely a right to compensation.
Justice Mark Turner rejected arguments that English law, or a combination of English and Chinese law, should determine those underlying ownership rights. The judge concluded that the fraudulent investments, financial losses, and bitcoin acquisitions were fundamentally connected to China.
The Ruling’s Impact
The decision hands U.K. prosecutors an important legal victory, although the government hasn’t secured an outright claim to the fortune. The High Court has not determined who ultimately owns the bitcoin.
For UK cryptocurrency holders, the case highlights a key principle: the laws governing ownership of seized or disputed digital assets depend on where the transaction originated and where the assets are held. Turner emphasized that questions concerning the substance and application of Chinese law must be resolved during subsequent proceedings.
Qian was eventually arrested in April 2024 and pleaded guilty to money laundering offences in September 2025, receiving an 11-year, eight-month prison sentence.
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