China is seeking to confiscate 61,896 Bitcoin and other assets tied to a fundraising fraud that caused losses of nearly 20 billion yuan for investors. The Tianjin Second Intermediate People’s Court accepted prosecutors’ request on October 13, according to a report, following a filing made on September 28.
The request targets assets linked to Qian Zhimin, who allegedly operated the scheme through Lantian Gree. Between April 2014 and August 2017, Qian is accused of raising more than 40.378 billion yuan ($5.6 billion) by selling investment products that promised high returns and guaranteed repayment. The scheme attracted more than 102,000 investors, who suffered losses exceeding 19.977 billion yuan.
Prosecutors Allege Funds Used for Bitcoin and Personal Purchases
Prosecutors said the money raised was used to repay earlier investors, buy Bitcoin, fund fake investment projects and purchase properties, cars and jewelry. Qian allegedly left China in July 2017 with a computer containing his Bitcoin wallet and later settled in the UK.
Confiscation Request Covers Multiple Cryptocurrencies
The confiscation request includes more than Bitcoin. Other assets listed by the court include:
- Around 72,745 Bitcoin Cash
- Around 72,745 Bitcoin Gold
- Around 72,745 Bitcoin SV
- More than 3.6 million XRP
- More than 70 million Dogecoin
The assets also include cash in different currencies, jewelry, bank balances and investments. UK authorities have seized assets linked to the case, and some cryptocurrency holdings have been converted into other forms. Chinese prosecutors want these assets recovered, with money owed to victims returned where applicable.
UK Court Dispute Centers on Bitcoin Ownership and Profits
A legal dispute in the UK concerns who owns around 61,000 Bitcoin and who should receive the profits from their price increase. According to the report, the UK High Court ruled that Chinese law should apply to the ownership dispute rather than UK law. The decision could affect how victims claim the Bitcoin and its gains.
The UK’s Crown Prosecution Service has said victims could receive compensation through a process in China. Further hearings are expected to examine whether victims can prove their claims to the Bitcoin. Law firm Fieldfisher, which represents some victims, is seeking to appeal the ruling.
Victims Given Six Months to Register Claims
The Tianjin court has opened a six-month period for victims and other interested parties to register for the proceedings. Victims can apply through the court’s online platform. The court is expected to hold a hearing after this period ends.
However, accepting the confiscation request does not mean the case is over or that victims will receive their money immediately. The final decision will determine how the assets are recovered and how much can be returned to the people who lost money.
