Chinese authorities are pursuing the confiscation of more than 61,800 Bitcoin connected to an alleged investment fraud involving 40.378 billion yuan, approximately USD 5.7 billion. According Chinese outlet The Paper, the case affected over 102,000 investors, with estimated losses approaching 20 billion yuan.
How the Investment Fraud Operated
The investigation focuses on Qian Zhimin, who allegedly controlled Tianjin Lantian Gree Electronic Technology between 2014 and 2017.
Prosecutors claim the company marketed unauthorized wealth-management products, promising “guaranteed principal and high returns” to attract investors across China.
Rather than financing legitimate commercial activities, the collected funds were allegedly redirected toward payments to earlier investors, fictitious projects and asset purchases.
Investigators identified Bitcoin acquisitions alongside property, luxury vehicles and jewellery. Qian reportedly left China in 2017 and subsequently relocated to Britain.
British Authorities Seize Cryptocurrency Holdings
UK investigators eventually confiscated assets associated with Qian, including more than 61,800 BTC and holdings of Bitcoin Cash, Bitcoin Gold, Bitcoin SV, XRP and Dogecoin. The seized portfolio also included cash, jewellery and investment assets.
The Bitcoin holdings represent a substantial potential recovery pool, although their eventual distribution remains subject to judicial proceedings across two jurisdictions.
Chinese Court Begins Confiscation Proceedings
On October 13, Tianjin’s Second Intermediate People’s Court accepted prosecutors’ application to classify the seized holdings as illegal proceeds.
The court established a six-month registration period for victims and interested parties seeking participation. Investors missing this deadline may still pursue reimbursement from recovered assets, although full compensation is not guaranteed.
UK Ruling Complicates Victim Claims
According to CoinDesk, a UK High Court ruling determined that Chinese law should govern alleged victims’ property claims concerning the seized Bitcoin.
The decision does not automatically eliminate restitution rights. Claimants must establish legally recognized ownership interests under Chinese law. Some victims’ lawyers are considering an appeal, potentially extending the recovery process.
Final Thoughts
The proceedings highlight challenges surrounding international cryptocurrency confiscation and investor restitution.
With billions in digital assets under dispute, the outcome could influence how courts address ownership, jurisdiction and compensation in future cross-border fraud cases involving cryptocurrencies.
Also Read: Trump to Announce Crackdown on Overseas Crypto Scams as FBI Reports Over 1 Million Complaints
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