Britain's High Court has ruled that Chinese law governs ownership claims to more than 61,000 bitcoin seized from convicted fraudster Zhimin Qian. The October 12 decision represents a significant setback for thousands of Chinese investors seeking to recover the cryptocurrency, now valued at approximately $5 billion.
Justice Mark Turner rejected arguments that English law or a combination of English and Chinese law should determine ownership rights to the seized assets. The court concluded that the fraudulent investments, financial losses, and bitcoin acquisitions were fundamentally connected to China, requiring Chinese law to apply.
The Fraud and the Bitcoin Seizure
Zhimin Qian, also known as Yadi Zhang, orchestrated approximately 10 fraudulent investment schemes in China between 2014 and 2017. Operating through Tianjin Lantian Gerui Electronic Technology Co. Ltd. and related entities, Qian collected approximately 40.2 billion yuan (roughly £4.1 billion) from investors through at least 128,409 investment contracts.
Qian converted portions of the proceeds into bitcoin, purchasing more than 100,000 BTC through an exchange account before fleeing China in July 2017. She subsequently entered Britain under an assumed identity.
Metropolitan Police officers searched properties connected to Qian and associate Jian Wen on October 31 and November 1, 2018, confiscating electronic devices, wallet credentials, and other assets connected to more than 61,000 BTC. Qian was arrested in April 2024 and pleaded guilty to money laundering offenses in September 2025, receiving an 11-year, eight-month prison sentence.
Implications for Fraud Victims
Thousands of investors pursued claims under Section 281 of Britain's Proceeds of Crime Act 2002, arguing that portions of the recovered bitcoin legally belonged to them. The central question was whether victims could establish direct ownership rights over cryptocurrency purchased with their stolen money.
Turner's decision dealt a blow to investors hoping to use English legal protections to establish ownership. However, the court did not determine whether Chinese law ultimately recognizes their claims, leaving the question of who ultimately owns the seized bitcoin unresolved.
The ruling strengthens the position of Britain's Director of Public Prosecutions, which is pursuing civil recovery of the assets, but it does not establish that the British Treasury can retain the proceeds. Subsequent proceedings will be required to resolve questions concerning the substance and application of Chinese law.
