Chinese prosecutors are seeking to confiscate more than 61,800 bitcoin and other assets tied to an alleged fraud scheme worth over 40 billion yuan, or roughly $5.7 billion, according to reporting by Chinese outlet The Paper.
The case centers on Qian Zhimin, the alleged controller of Tianjin Lantian Gree Electronic Technology. Prosecutors say that from 2014 to 2017, the company sold unlicensed wealth-management products across China, promising guaranteed principal and high returns. The scheme raised more than 40.378 billion yuan from over 102,000 investors, who lost nearly 20 billion yuan.
According to prosecutors, the money was used to repay earlier investors, run fake investment projects, buy bitcoin and acquire property, cars and jewelry, rather than funding real businesses. Qian fled China in 2017 and later settled in the U.K. British authorities eventually seized his assets, including more than 61,800 bitcoin, plus bitcoin cash, bitcoin gold, bitcoin SV, ripple, dogecoin, cash, jewelry and investment holdings.
On Oct. 13, Tianjin's Second Intermediate People's Court said it had accepted prosecutors' request to confiscate the assets as illegal gains. The court has opened a six-month period for victims and other interested parties to join the case. Victims who do not participate can still seek refunds from recovered assets.
The development comes days after a U.K. High Court ruled that Chinese law, rather than English law, should govern alleged victims' claims to the more than 61,000 bitcoin seized in Britain. The ruling does not mean victims can never recover their coins; instead, it calls for assessing whether the victims have a property claim under Chinese law, with further hearings expected. Lawyers for some victims are seeking to appeal.
The case is one of China's largest alleged crypto-linked frauds, and the bitcoin stash could be worth far more today than when it was seized.
