China made a move on 61,800 seized Bitcoin – But a UK court got there first

With scams rising almost daily, Chinese prosecutors have made efforts to recover assets linked to one of its largest alleged investment frauds. 

The latter centers on the very famous Qian Zhimin case, which involves more than 40.378 billion yuan ($5.7 billion) and over 102,000 investors.

For those unaware, between 2014 and 2017, Qian allegedly raised money by selling unlicensed wealth-management products that promised guaranteed returns. 

Here, the prosecutors’ claim that much of the money was used to repay earlier investors, fund fictitious projects, purchase Bitcoin [BTC], and acquire luxury assets. This, in turn, left investors with losses exceeding 19.977 billion yuan. 

How things changed after 2017?

After fleeing China in 2017, Qian eventually settled in the UK. That was the time when authorities seized more than 61,800 Bitcoin alongside other cryptocurrencies, cash, jewelry, and financial assets.

Now on the 13th October, 2026, Tianjin’s Second Intermediate People’s Court accepted prosecutors’ application to confiscate these assets as illegal proceeds. This opened a six-month period for victims and other interested parties to participate in the proceedings.

However, it’s important to note the confiscation application does not automatically mean that the assets will all go to the Chinese government or that victims will immediately receive compensation. 

The dispute became even more complicated following a UK High Court ruling. For context, on the 13th of October, 2026, the London court has strengthened the U.K. government’s chances of retaining most of the £3.8 billion ($5 billion) in seized Bitcoin.

They had ruled that Chinese fraud victims cannot use English law to claim the 61,000 BTC. Remarking on the same, Detective Sergeant Isabella Grotto, the lead investigating officer on the case, in a recent report by Chainalayis said, 

This was a long, complex, and unprecedented investigation into the laundering of criminal proceeds through cryptocurrency. Over a number of years, significant efforts were made to move and disguise the funds and convert them into assets in the UK.

What’s more?

Well, this isn’t the first time Chinese authorities have taken a step to crack down on the increasing crypto scams.

According to a previous report by AMBCrypto, Chinese authorities in Beijing’s Chaoyang district have launched an investigation into CreditEase and its affiliated companies. This happened after the firm halted redemptions on $4.5 billion worth of investment products in May, citing insolvency risks.

However, this in no sense means that China is becoming skeptical of crypto yet again. In fact, former UBS executive Joseph Chee has clearly suggested that China is reopening crypto access, potentially using Hong Kong as a testing ground.

Final Summary

• Between 2014 and 2017, Qian allegedly raised money by selling unlicensed wealth-management products that promised guaranteed returns.
• After fleeing China in 2017, Qian eventually settled in the UK, where authorities seized more than 61,800 Bitcoin alongside other cryptocurrencies.