China seeks to seize 61,800 BTC in $5.7 billion fraud case
Prosecutors target a massive crypto stash
Chinese prosecutors are seeking to confiscate more than 61,800 Bitcoin tied to an alleged fraud worth over 40 billion yuan, or about $5.7 billion. The move comes after assets were seized in the United Kingdom as part of the case.
How the scheme worked
- Fake products: From 2014 to 2017, Tianjin Lantian Gree Electronic Technology sold unlicensed wealth-management products across China. Prosecutors say it promised guaranteed principal and high returns.
- Large reach: The scheme raised more than 40.378 billion yuan from more than 102,000 investors.
- Misuse of funds: Instead of funding real businesses, the money was allegedly used to repay earlier investors, run fake investment projects, buy Bitcoin, and acquire property, cars and jewelry.
- Heavy losses: Investors are reported to have lost nearly 20 billion yuan.
Assets seized and court actions in China
Qian Zhimin, the alleged controller of the company, fled China in 2017 and later settled in the UK. British authorities seized his assets, including more than 61,800 Bitcoin, along with other cryptocurrencies, cash, jewelry and investment holdings.
On Oct. 13, Tianjin's Second Intermediate People's Court 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. Those who do not participate can still seek refunds from recovered assets.
A dispute over which law applies
Days before China's court action, a U.K. High Court ruled that Chinese law, not English law, should govern alleged victims' claims to the more than 61,000 Bitcoin seized in Britain. The ruling does not guarantee recovery for victims. It means the question of whether victims have a property claim will be assessed under Chinese law, with further hearings expected. Lawyers for some victims are seeking to appeal.
What is known and what remains unclear
Confirmed: The amount of Bitcoin targeted, the time period of the alleged scheme, the number of investors, the reported losses, the seizure location in the UK, the Chinese court's acceptance of the confiscation request, and the U.K. court ruling on which law applies.
Still unclear: Whether victims will be able to recover any of the Bitcoin or other seized assets. The final outcome of any appeals and the full result of the Chinese confiscation process have not been stated in the supplied material.
Sources
Newisty Editorial Team covers technology, cryptocurrency, digital products, online platforms, developer tools and the wider digital economy. Our content is researched from official sources, company announcements, public documentation, market data and other primary or reputable sources. Articles are reviewed and edited before publication for clarity, accuracy and useful context.
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