Chinese prosecutors seek Confiscation of 61,800 Bitcoin Tied to $5.7 billion fraud

Tianjin court opens six-month period for victims to join case; UK court rules Chinese law governs claims on seized coins

By LineZotpaper

Published22 October 2026

Read Time2 min

Chinese prosecutors have moved to confiscate more than 61,800 Bitcoin and other assets linked to an alleged $5.7 billion Ponzi-like scheme that affected over 102,000 investors, with a Tianjin court accepting the request on October 13 and opening a six-month window for victims to participate. The case, centered on Tianjin Lantian Gree Electronic Technology and its alleged controller Qian Zhimin, has also drawn a UK High Court ruling that Chinese law should govern victims’ claims to the Bitcoin seized in Britain.

According to reporting by Chinese outlet The Paper, prosecutors allege that from 2014 to 2017, the company sold unlicensed wealth-management products across China, promising guaranteed principal and high returns. The scheme raised more than 40.378 billion yuan from more than 102,000 investors, who ultimately lost nearly 20 billion yuan. The funds were used to repay earlier participants, finance fake investment projects, and purchase Bitcoin, property, cars, and jewelry rather than genuine business operations.

Qian Zhimin, the alleged controller, fled China in 2017 and later settled in the United Kingdom. British authorities subsequently seized his assets, including more than 61,800 Bitcoin as well as Bitcoin Cash, Bitcoin Gold, Bitcoin SV, Ripple, Dogecoin, cash, jewelry, and investment holdings.

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

The development comes days after a UK High Court ruled that Chinese law, rather than English law, should govern alleged victims’ claims to the more than 61,000 BTC seized in Britain. The ruling does not mean victims can never recover their coins. Instead, it calls for assessing whether the victims have a property claim under Chinese law, with further hearings expected. Lawyers for some victims are seeking to appeal.

The case is one of China’s largest alleged crypto-linked frauds, and the Bitcoin stash could be worth far more today than when it was seized.

Analysis

Why This Matters

The outcome could determine whether the 61,800+ Bitcoin and other assets are confiscated by the Chinese state or returned to the victims, who suffered nearly 20 billion yuan in losses.
The cross-border legal battle highlights the difficulties of recovering assets from international crypto-related fraud, especially when jurisdictions differ on property rights.
The case may set a precedent for how Chinese courts handle similar crypto-linked fraud schemes and asset recovery.

Background

The fraud scheme operated from 2014 to 2017, predating China’s broader crackdown on cryptocurrency trading and mining. Qian Zhimin fled to the UK before the scheme collapsed, and British authorities later seized his assets. The case is among the largest alleged crypto-linked frauds in China, involving a Bitcoin stash that has significantly appreciated in value since its seizure. The UK High Court’s ruling that Chinese law applies adds a layer of legal complexity for victims seeking recovery.

Key Perspectives

[Chinese Prosecutors]: Seek to confiscate the assets as illegal gains, arguing the Bitcoin and other property were purchased with defrauded investor funds. The Tianjin court has invited victims to participate in the confiscation proceedings.

[Victims and Their Lawyers]: Some victims are appealing the UK ruling that Chinese law governs their claims, potentially making recovery more uncertain. The six-month period to join the Chinese case offers a path to reclaim funds.

[Critics and Legal Observers]: Note the tension between the two jurisdictions: British courts have recognized the assets belong to Chinese victims, but applying Chinese law may limit what victims can recover. Further hearings and appeals could prolong the process.

What to Watch

Whether the UK Court of Appeal takes up the victims’ challenge to the High Court ruling.
The outcome of the six-month window in Tianjin, including how many victims step forward and how the court handles their claims.
Any valuation changes in the Bitcoin stash as court proceedings continue.

Sources

China seeks to seize 61,800 BTC tied to $5.7 billion fraud scheme · CoinDesk: Bitcoin, Ethereum, Crypto News and Price Data

Checked

12 claims in this story checked against 1 source: 9 supported.

Show each claim

SupportedChinese prosecutors are seeking confiscation of 61,800 Bitcoin tied to a $5.7 billion fraud scheme.CoinDesk: Bitcoin, Ethereum, Crypto News and Price Data: “China seeks to seize 61,800 BTC tied to $5.7 billion fraud scheme.”
Not in the sourcesThe scheme was Ponzi-like.CoinDesk: Bitcoin, Ethereum, Crypto News and Price Data: “Chinese prosecutors are seeking to confiscate more than 61,800 BTC and other assets linked to an alleged $5.7 billion fraud that affected more than 102,000 investors.”
SupportedThe alleged scheme affected more than 102,000 investors.CoinDesk: Bitcoin, Ethereum, Crypto News and Price Data: “Chinese prosecutors are seeking to confiscate more than 61,800 BTC and other assets linked to an alleged $5.7 billion fraud that affected more than 102,000 investors.”
SupportedThe Tianjin court accepted prosecutors’ confiscation request on October 13.CoinDesk: Bitcoin, Ethereum, Crypto News and Price Data: “On Oct. 13, Tianjin’s Second Intermediate People’s Court said it had accepted prosecutors’ request to confiscate the assets as illegal gains.”
SupportedThe court opened a six-month period for victims to participate in the case.CoinDesk: Bitcoin, Ethereum, Crypto News and Price Data: “The court has opened a six-month period for victims and other interested parties to join the case.”
Partly supportedThe UK court ruled that Chinese law governs claims on the seized coins.CoinDesk: Bitcoin, Ethereum, Crypto News and Price Data: “The development comes days after a U.K. High Court ruled that Chinese law, rather than English law, should govern alleged victims’ claims to the more than 61,000 BTC seized in Britain.”
SupportedFrom 2014 to 2017, the company sold unlicensed wealth-management products across China, promising guaranteed principal and high returns.CoinDesk: Bitcoin, Ethereum, Crypto News and Price Data: “Prosecutors say that from 2014 to 2017, the company sold unlicensed wealth-management products across China, promising guaranteed principal and high returns.”
SupportedThe scheme raised more than 40.378 billion yuan.CoinDesk: Bitcoin, Ethereum, Crypto News and Price Data: “The scheme raised more than 40.378 billion yuan from more than 102,000 investors, who lost nearly 20 billion yuan.”
SupportedInvestors ultimately lost nearly 20 billion yuan.CoinDesk: Bitcoin, Ethereum, Crypto News and Price Data: “The scheme raised more than 40.378 billion yuan from more than 102,000 investors, who lost nearly 20 billion yuan.”
Partly supportedThe funds were used to repay earlier participants, finance fake investment projects, and buy assets instead of supporting genuine business operations.CoinDesk: Bitcoin, Ethereum, Crypto News and Price Data: “This money, however, was allegedly used to repay earlier investors, run fake investment projects, buy Bitcoin and acquire property, cars and jewelry, instead of funding real businesses.”
SupportedBritish authorities seized more than 61,800 Bitcoin among Qian’s assets.CoinDesk: Bitcoin, Ethereum, Crypto News and Price Data: “British authorities eventually seized his assets, including more than 61,800 bitcoin, plus bitcoin cash, bitcoin gold, bitcoin SV, ripple, dogecoin, cash, jewelry and investment holdings.”
SupportedThe UK ruling does not mean victims can never recover their coins.CoinDesk: Bitcoin, Ethereum, Crypto News and Price Data: “The ruling doesn’t mean that victims can never recover their coins.”