British authorities sentenced 47-year-old Qian Zhimin to prison for orchestrating a multibillion-pound Bitcoin fraud targeting around 120,000 Chinese investors. Qian fled China in 2017 and settled in London’s Hampstead district, where police found tens of thousands of Bitcoin on her devices during a 2018 raid.
The cryptocurrency’s value has surged since the seizure, complicating efforts to resolve investor claims. Legal proceedings to determine the fate of the funds are scheduled for next year, with compensation mechanisms under consideration for victims.
Fraud Scheme and Investigation
According to the Metropolitan Police, Qian operated through a company called Lantian Gerui, also known as Bluesky Greet. The firm promised high returns and daily payments for investments in cryptocurrency mining and medical technology development.
Many investors, including elderly participants, lost their savings after payouts abruptly stopped in 2017 amid a Chinese government probe. Qian used a fake passport to enter the UK and rented a Hampstead mansion for over £17,000 monthly. Authorities described her as the “architect” of the scheme motivated by greed.
Asset Seizure and Legal Proceedings
Police discovered Qian’s hard drives and laptops containing large Bitcoin holdings, now valued at several billion pounds. An assistant, Wen Jian, also faced conviction for money laundering related to the case.
Court documents revealed Qian’s plans recorded in diaries included founding an international bank, buying European properties, and leading a self-declared microstate named Liberland.
The Crown Prosecution Service (CPS) stated that a civil case to determine the disposition of the seized Bitcoin will commence next year. Thousands of investors are expected to file claims, and the CPS is exploring compensation options for those without representation.
Defense and Related Cases
Qian’s attorney characterized her as a “Bitcoin pioneer” who accepted the verdict but denied intent to commit fraud, attributing misleading business practices to misunderstandings.
The UK Treasury has not released statements regarding the handling of any unclaimed assets from the case.
In a related development, the U.S. Department of Justice indicted Chen Zhi, founder of Cambodia’s Prince Holding Group, for wire fraud and money laundering linked to crypto scams. Authorities seized approximately 127,000 bitcoins worth about $15 billion, marking the largest forfeiture in DOJ history.
