China seeks to confiscate $5 billion in Bitcoin and other cryptocurrencies in fraud case

Britain's High Court ruled on October 12, 2026, that Chinese law governs victim claims to over 61,000 bitcoin worth $5 billion seized from convicted fraudster Zhimin Qian. Qian illegally raised over 40 billion yuan from more than 100,000 investors between 2014 and 2017 through Tianjin Lantian Gerui Electronic Technology. Meanwhile, Chinese prosecutors filed a September 28, 2026 application with the Tianjin No. 2 Intermediate People's Court to confiscate Qian's cryptocurrency assets.

UK High Court ruling on governing law

• ▪According to law firm Duan & Duan UK LLP, the British High Court ruling requires Chinese fraud victims to establish direct proprietary ownership under Chinese law rather than personal claims as creditors for monetary repayment.
• ▪Fieldfisher, the lead law firm representing individual fraud claimants, announced it is pursuing an appeal against Justice Mark Turner's October 12, 2026 ruling.
• ▪On October 12, 2026, Justice Mark Turner of Britain's High Court ruled that Chinese law governs ownership claims over more than 61,000 bitcoin seized from convicted fraudster Zhimin Qian.

Details of the fraud scheme

• ▪Zhimin Qian's investment fraud scheme affected over 100,000 investors who suffered combined losses of approximately 19.98 billion yuan.
• ▪Between April 2014 and August 2017, Zhimin Qian operated fraudulent investment schemes through Tianjin Lantian Gerui Electronic Technology Co. Ltd., illegally raising over 40 billion yuan.

Chinese court confiscation proceedings

• ▪The Tianjin No. 2 Intermediate People's Court opened a six-month period starting in October 2026 for interested parties, including Zhimin Qian's relatives and affected investors, to participate in confiscation proceedings.
• ▪On September 28, 2026, the Tianjin No. 2 Intermediate People's Court in China accepted a judicial application from Chinese prosecutors to confiscate approximately 61,896.41552945 bitcoin and other assets seized from Zhimin Qian.
• ▪The Chinese court confiscation application for Zhimin Qian's assets covers Bitcoin, XRP, Dogecoin, Bitcoin Cash, Bitcoin Gold, Bitcoin SV, cash in foreign currencies, jewelry, bank deposits, and investment portfolios.

UK government bitcoin holdings

• ▪According to Arkham Intelligence tracking data, the United Kingdom government holds approximately 61,245 bitcoin valued at around $5 billion.
• ▪According to Bitcoin Treasuries data, the United Kingdom ranks third in national government bitcoin holdings behind the United States with 328,372 bitcoin and China with 190,000 bitcoin.

Zhimin Qian criminal proceedings

• ▪Zhimin Qian pleaded guilty to money laundering offenses in September 2025.
• ▪Zhimin Qian fled China for Myanmar in July 2017 before entering Britain, where she was arrested in April 2024 and sentenced to 11 years and eight months in prison in November 2025.

Zhimin Qian's bitcoin purchases

• ▪Zhimin Qian acquired her cryptocurrency holdings using fraud proceeds through Huobi trading accounts, over-the-counter transactions in China, and cryptocurrency mining.
• ▪Zhimin Qian purchased more than 100,000 bitcoin through a controlled exchange account before fleeing China in July 2017.

Victim compensation in UK proceedings

• ▪According to Chinese news outlet Caixin, fraud victims participating in United Kingdom court proceedings could be limited to recovering their original investments and interest.
• ▪Approximately 16,000 Chinese investors joined civil recovery proceedings under Section 281 of Britain's Proceeds of Crime Act 2002 seeking proprietary rights to the seized 61,000 bitcoin.