UK could retain much of $5B Bitcoin seizure after High Court backs Chinese law in fraud case
The UK government has strengthened its chances of retaining a $5 billion Bitcoin haul after the High Court in London ruled that Chinese law should determine whether thousands of victims of a fraud can claim crypto seized from Zhimin Qian, the Financial Times reported Tuesday.The Zhimin Qian case is the UK's largest crypto seizure and money-laundering prosecution, involving more than 61,000 BTC linked to a Chinese Ponzi scheme that caused about £600 million in losses for over 128,000 investors between 2014 and 2017.Qian, also known as Yadi Zhang, fled China using false documents and attempted to launder the proceeds in the UK through property purchases and Bitcoin. She was sentenced to 11 years and 8 months in November 2025, while two associates received prison sentences for money laundering and assisting her.The remaining dispute concerns the fate of the seized Bitcoin. The new ruling could make it harder for victims to recover their hoard, which has appreciated substantially since the fraud.English law could have allowed claimants to argue that the Bitcoin belonged to them, rather than treating them as creditors, but Mr Justice Mark Turner ruled that Chinese law should apply because the alleged fraud, financial losses and related contractual relationships originated in China.The decision does not determine who will ultimately receive the assets, but thousands of victims must now demonstrate that they have legally recognized rights to the Bitcoin under Chinese law to stop the state from keeping the assets.If the victims cannot establish the required property rights, the British government could retain much of the Bitcoin windfall, potentially benefiting public finances. Prosecutors have previously said the victims could receive compensation through a redress scheme administered in China.The case will nevertheless continue in the High Court in London, where expert evidence on Chinese law will be considered unless the ruling is overturned on appeal. Law firm Fieldfisher, which represents the claimants, said it was pursuing an appeal, while the CPS said a further hearing would determine how the law applies and whether any victims can establish an interest in the Bitcoin.