Hundreds of thousands of Chinese investors who lost money in a massive Bitcoin Ponzi scheme could face years of legal challenges to recover their funds.
Key Takeaways:
Chinese investors defrauded in a $6B Bitcoin Ponzi scheme may face years of legal hurdles to recover their funds. The UK seized 61,000 BTC linked to the case, but proving victims’ ownership remains a major challenge. Lawyers say victims are unlikely to recover Bitcoin’s appreciated value, as courts prioritize returning principal amounts.The long fight comes as lawyers struggle to prove a direct link between their claims and 61,000 bitcoins seized by British authorities, according to a report by Nikkie Asia.
Chinese Businesswoman Accused of $6B Crypto Fraud Fled to UK in 2017
The case centers on Qian Zhimin, also known as Zhang Yadi, a 47-year-old Chinese national who fled to the United Kingdom in 2017 after allegedly defrauding investors through her company, Tianjin Lantian Gerui Electronic Technology.
From 2014 to 2017, she reportedly raised 43 billion yuan ($6 billion) by selling high-return investment products before converting the funds into crypto assets.
Qian pleaded guilty in a London court in late September to two counts of money laundering using cryptocurrencies.
Her associate, Wen Jian, was convicted earlier this year and sentenced to nearly seven years in prison for helping move the funds.
The London Metropolitan Police later seized 61,000 BTC from Qian’s devices during a 2018 raid in Hampstead, now worth over $7.4 billion, making it the largest crypto seizure in U.K. history.
However, the UK government may retain much of the seized Bitcoin, a move that has alarmed victims’ lawyers in China.
Jack Ding, assistant managing partner at Duan & Duan, which represents around 10,000 victims, said linking investors’ money to the confiscated coins remains a major obstacle.
“Some materials lack sufficient information to establish a clear connection,” he said.
Legal experts warn that the complexity of tracing funds across multiple accounts and currencies makes restitution uncertain.
A civil recovery case under U.K. law, filed in September 2024, will determine how the assets are distributed. The case is scheduled for January 2026.
Yang Yuhua of Thornhill Legal said Qian’s guilty plea “indirectly validates the fraud allegations in China,” but added that recovering the appreciated value of Bitcoin is unlikely.
Courts typically focus on returning the principal and reasonable interest rather than speculative gains.
130,000 Chinese Victims Struggle to Claim Bitcoin Losses
The victims, estimated at 130,000 across China, include many small investors unfamiliar with digital finance, complicating coordination and documentation.
Ding said effective communication has been difficult as many victims “have limited education and experience with computers.”
Qian, who previously denied the charges, claimed she fled China to escape a crackdown on crypto entrepreneurs.
She is scheduled for sentencing in November, alongside another associate, Hok Seng Ling, who also pleaded guilty.
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.
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