UK Court Rules Chinese Law Governs 61,000 Bitcoin Fraud Claims
High Court rejects English law for seized Bitcoin claims
Chinese fraud victims seeking to recover 61,000 Bitcoin seized by UK authorities have suffered a legal setback. London's High Court ruled that Chinese law, not English law, will determine their ownership claims to the assets. On Monday, Justice Mark Turner rejected arguments that English law or a mix of English and Chinese law should apply. He said Chinese law must decide whether the claimants have property rights in the seized Bitcoin. The judge noted that the damage occurred in China and that the victims parted with their money there.
What the ruling means for victims
The victims had wanted English law to apply because it could have allowed them to claim direct ownership of the Bitcoin. Under English law, they might have been able to stake a stronger claim to the assets themselves. Instead, they would now seek compensation as creditors under Chinese law, which may offer a weaker position. However, the ruling does not decide who ultimately owns the Bitcoin. That question will be settled later, after expert evidence on Chinese law is presented.
Fraud behind the seizure
The case traces back to an investment fraud scheme run by Zhimin Qian between 2014 and 2017. British authorities seized the Bitcoin during a money-laundering investigation. More than 128,000 investors are reportedly affected by the fraud. The seized Bitcoin is worth more than $5 billion, according to CoinGecko data.
Appeal and next steps
Law firm Fieldfisher, which represents the claimants, is pursuing an appeal against the ruling, according to a Financial Times report. The case will stay in London's High Court rather than being moved to a Chinese court. The next stage will involve expert evidence on Chinese law to determine whether victims can establish ownership interests in the Bitcoin. The Crown Prosecution Service confirmed a further hearing will examine how Chinese law applies.
Why this matters
The ruling shapes how thousands of fraud victims in China may recover funds held in the UK. If Chinese law limits their claims to creditor status rather than direct ownership, the amount they recover could be significantly smaller than the current value of the seized Bitcoin. The outcome could set a precedent for how cross-border crypto fraud cases are handled in UK courts.
What remains unclear
It is not yet known whether the victims can establish any property interest under Chinese law. The appeal outcome is also uncertain. No timeline has been set for the next hearing or the appeal decision.
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.