Chinese prosecutors are seeking confiscation of more than 61,800 BTC and other assets linked to an alleged $5.7 billion fraud. The request follows a British ruling that Chinese law should govern alleged victims’ claims to the bitcoin seized in Britain.
Key Takeaways
- A Tianjin court accepted the confiscation request on October 13 and opened a six-month period for interested parties to participate.
- Prosecutors allege the scheme raised more than 40.378 billion yuan from over 102,000 investors.
- The British ruling does not rule out recovery for victims; further hearings are expected, and lawyers for some victims are seeking an appeal.
Table of Contents
- Bitcoin confiscation request opens a claims window
- British ruling leaves recovery claims unresolved
- Prosecutors outline alleged investor losses
- Conclusion
Bitcoin confiscation request opens a claims window
Tianjin’s Second Intermediate People’s Court said on October 13 that it had accepted prosecutors’ application to confiscate the assets as illegal gains. Victims and other interested parties have six months to join the proceedings.
The court’s acceptance is not a completed confiscation. Victims who do not participate can still seek refunds from assets recovered in the case.
British authorities previously seized the bitcoin alongside bitcoin cash, bitcoin gold, bitcoin SV, ripple and dogecoin. The seized holdings also included cash, jewelry and investments.
British ruling leaves recovery claims unresolved
The U.K. High Court ruled that Chinese law, rather than English law, should determine alleged victims’ claims to the seized bitcoin. That decision leaves the question of whether victims have a property claim under Chinese law for further assessment.
Additional hearings are expected. Lawyers representing some victims are seeking to appeal, so the ruling does not establish that victims can never recover the coins.
Prosecutors outline alleged investor losses
The case centers on Qian Zhimin, the alleged controller of Tianjin Lantian Gree Electronic Technology. Prosecutors say the company offered unlicensed wealth-management products across China between 2014 and 2017, promising principal protection and high returns.
According to prosecutors, the operation collected more than 40.378 billion yuan from over 102,000 investors, leaving nearly 20 billion yuan in losses. They allege the money went toward repayments to earlier participants, fake investment projects, bitcoin purchases, property, cars and jewelry rather than genuine business activity.
Qian fled China in 2017 and later settled in the United Kingdom, where authorities eventually seized the assets.
Conclusion
The Chinese confiscation proceedings and British claims process remain unresolved. The immediate steps are the six-month participation window in Tianjin and further consideration of victims’ property claims under Chinese law.
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