China seeks to seize 61,800 BTC tied to $5.7 billion fraud scheme

Chinese prosecutors have sought to seize over 61,800 Bitcoin, valued at approximately $5.7 billion, in connection with a major fraud scheme, according to Chinese media. The case involves Qian Zhimin, who is accused of controlling Tianjin Lantian Gree Electronic Technology. The prosecution alleges that between 2014 and 2017, the company sold unauthorized wealth-management products, promising guaranteed returns, which attracted more than 102,000 investors and resulted in losses of nearly 20 billion yuan.

Prosecutors claim that the stolen funds were allegedly used to repay investors, launch fake investment projects, acquire Bitcoin, and purchase high-value assets like property, cars, and jewelry. After fleeing to the UK in 2017, Qian was eventually apprehended by British authorities, who seized his assets, including a substantial amount of Bitcoin and other cryptocurrencies.

On October 13, Tianjin's Second Intermediate People's Court accepted the prosecutors' request to confiscate the Bitcoin and other assets as illegal gains. The court has granted a six-month window for victims and other interested parties to join the case. Victims who do not participate can still seek refunds from the recovered assets.

The ruling comes shortly after a U.K. High Court decision that Chinese law should govern alleged victims' claims to the seized Bitcoin. While the decision does not guarantee that victims will recover their coins, it sets the stage for assessing their property rights under Chinese law. Legal action from some victims is underway. This case is considered one of China's largest alleged cryptocurrency-linked frauds, and the seized Bitcoin could now be worth significantly more than when it was seized.