It is reported that China is seeking to confiscate 61,896 bitcoins, valued at several billion US dollars, related to a fundraising fraud case that resulted in investors losing nearly 20 billion yuan. A court in Tianjin has accepted the application filed by the prosecution to confiscate the bitcoins and other assets associated with Qian Zhimin. The prosecution alleges that Qian Zhimin is suspected of operating the scam through “Lantian Greely.”
How much money the victims may ultimately be able to recover in this case, and to whom the profits resulting from the rise in Bitcoin prices should belong.
China seeks to confiscate 61,896 bitcoins
On October 13, the Second Intermediate People's Court of Tianjin accepted an application submitted by the prosecution on September 28, requesting the seizure of assets related to Qian Zhimin.
The prosecution alleges that from April 2014 to August 2017, Qian Zhimin was involved in raising over 40.378 billion yuan (5.6 billion US dollars) by selling investment products that promised high returns and guaranteed repayment. This scam attracted more than 102,000 investors, resulting in losses of over 19.977 billion yuan.
The prosecution stated that these funds were used to repay early investors, purchase Bitcoin, finance fraudulent investment projects, as well as to buy real estate, cars, and jewelry.
It is alleged that Qian Zhimin left China in July 2017 with a computer containing his Bitcoin wallet, and subsequently settled in the UK.
XRP, Dogecoin, and other assets have also been included.
This time, not only Bitcoin is to be confiscated in this application. Other assets listed by the court include:
- Approximately 72,745 bitcoins in cash
- Approximately 72,745 Bitcoin Gold coins
- Approximately 72,745 Bitcoins SV
- Over 3.6 million XRP
- Over 70 million Dogecoin coins
The assets involved in the case also include cash in different currencies, jewelry, bank deposits, and investments. British authorities have seized assets related to this case, and some cryptocurrency holdings have been converted into other forms.
The Chinese prosecution hopes to recover these assets and return the funds that should be given to the victims to them in appropriate cases.
A dispute in a British court may affect the attribution of Bitcoin earnings
The case also faces a legal dispute in the UK, with the focus on who owns approximately 61,000 bitcoins and who should receive the profits from the increase in value of these bitcoins.
It is reported that the UK High Court has ruled that this ownership dispute should be governed by Chinese law, rather than British law. This ruling may affect how the victims can claim these bitcoins and their appreciation gains.
The UK Crown Prosecution Service stated that victims may be able to obtain compensation through Chinese procedures. It is expected that subsequent hearings will examine whether the victims can prove the basis for their claims regarding these bitcoins.
The law firm representing some of the victims, Fieldfisher, is seeking to appeal against this ruling.
When will the victims be able to get their funds back?
Tianjin courts have established a six-month registration period for victims and other interested parties to register for participation in the relevant procedures. Victims can submit their applications through the court's online platform.
It is expected that the court will hold a hearing after the expiration of this period. However, accepting the confiscation application does not mean that the case is over, nor does it mean that the victims will immediately get their funds back.
The final ruling will determine how these assets will be recovered and how much money can be returned to those who have suffered losses.
