The UK government is attempting to retain over 61,000 Bitcoin, currently valued at around $6.7 billion, that was seized from a Chinese national convicted in a massive investment fraud case.
Key Takeaways:
The UK is seeking to keep 61,000 BTC seized from a Chinese fraud case, now worth $6.7 billion. Victims are pushing for compensation based on current Bitcoin value, not just original investments. Legal battles and market volatility could delay resolution and impact the final windfall.The potential windfall stems from the conviction of Zhimin Qian and her Malaysian associate Seng Hok Ling, both of whom pleaded guilty to money laundering charges in London earlier this year.
$6.7B in Bitcoin Seized at London Mansion in 2018 Fraud Probe
The digital assets were first discovered in 2018 on devices seized at a luxury mansion in Hampstead, north London, during an investigation into suspicious property purchases.
At the time, authorities were unaware they had stumbled upon what would become the UK’s largest-ever crypto seizure.
Qian, also known as Yadi Zhang, had funneled stolen investor funds from China into Bitcoin before fleeing the country and settling in the UK under a false identity.
Court documents reveal that Qian ran a fraudulent investment firm in China between 2014 and 2017, offering returns as high as 300%.
The scheme reportedly defrauded over 128,000 individuals, many of whom are now seeking compensation.
Lawyers for some victims argue that the Bitcoin should be returned at its current value, not merely the original sums invested, citing years of delay and the life savings many lost.
UK officials are debating what to do with the massive haul, according to a report from the Financial Times.
Some Treasury insiders have speculated the recovered crypto could reduce the fiscal burden in the upcoming Budget, but others caution that legal proceedings could stretch into 2027.
The Office for Budget Responsibility does not account for asset seizures in its fiscal forecasts, and crypto holdings are not formally recognized as financial assets.
The next civil hearing is expected in January, with a High Court decision likely to be appealed. Meanwhile, Qian and Ling await sentencing in November.
UK authorities face another challenge: how to liquidate such a large amount of Bitcoin without causing a price shock.
With crypto markets notoriously volatile, the final value of the seized funds could fluctuate dramatically before any resolution.
Crypto-Related Physical Attacks Surge 169% in Six Months
As reported, physical attacks targeting Bitcoin and crypto holders are rising at an alarming rate, according to new data tracked by CASA co-founder Jameson Lopp.
Since late February, 35 new violent incidents have been reported globally, a 169% increase in just six and a half months.
The uptick adds to an already troubling trend, as cryptocurrency markets continue their bullish run.
In total, 48 attacks have occurred so far in 2025, marking a 33% increase over all of 2024. France alone has accounted for 14 of this year’s reported incidents.
One of the most disturbing cases took place on September 6 in Cambridge, Canada, where a young man was abducted at gunpoint and forced to transfer funds into a cryptocurrency wallet.
The post The UK Seeks to Keep $6.7B in Seized Bitcoin from Chinese Fraud Case appeared first on Cryptonews.
