Chinese prosecutors are seeking to confiscate more than 61,800 Bitcoin tied to an alleged $5.7 billion fraud scheme. The move follows a U.K. court ruling that Chinese law governs victims' claims to the coins. A six-month window now lets interested parties join the case.
Chinese prosecutors have moved to seize more than 61,800 Bitcoin linked to a fraud case worth over 40 billion yuan, roughly $5.7 billion. The coins were seized in Britain, and the case centers on Qian Zhimin.
What prosecutors allege
Prosecutors say Qian controlled Tianjin Lantian Gree Electronic Technology, which sold unlicensed wealth-management products across China from 2014 to 2017, promising guaranteed principal and high returns. The scheme raised more than 40.378 billion yuan from more than 102,000 investors, who lost nearly 20 billion yuan.
According to the allegations, the company used the money to repay earlier investors, run fake investment projects, buy Bitcoin and acquire property, cars and jewelry. Qian then fled China in 2017 and later settled in the UK, where authorities seized assets that included bitcoin cash, bitcoin gold, bitcoin SV, ripple, dogecoin, cash and jewelry.
Chinese court opens the case
The Tianjin court lists 61,896.41552945 BTC alongside other cryptocurrencies, cash, jewelry and financial assets in its notice. Prosecutors ask for confiscation except where assets are legally returned to harmed participants.
Tianjin's Second Intermediate People's Court said it accepted the request to confiscate the assets as illegal gains. The court opened a six-month period for victims and other interested parties to join the case, and victims who do not participate can still seek refunds from recovered assets.
A U.K. ruling on whose law applies
The development comes days after a U.K. High Court ruled that Chinese law, rather than English law, should govern alleged victims' claims to the seized coins. However, the ruling does not mean victims can never recover their coins. It calls for assessing whether they have a property claim under Chinese law, with further hearings expected.
According to The Defiant, the English judgment did not order the coins transferred to China. Lawyers for some victims are seeking to appeal.
Sources: CoinDesk, The Defiant
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