Key Takeaways
- • China's Tianjin Second Intermediate People's Court accepted an application on September 28 to forfeit cryptocurrencies linked to Chen Zhimin, convicted of money laundering, with the court disclosing the filing on October 13, according to U.Today's report.
- • The assets identified for forfeiture include 61,896.41552945 bitcoin valued at about $5 billion at recent prices, plus XRP, dogecoin, bitcoin cash, bitcoin gold and bitcoin SV, along with cash in U.S. dollars, euros and pounds, jewellery, bank deposits and investment portfolios.
- • Britain's High Court ruled on October 12 that Chinese law applies to victims' claims to the seized cryptocurrencies, but the ruling did not determine ownership of the assets.
- • The underlying scheme involved about 40.38 billion yuan raised from April 2014 to August 2017 through fake high-return investment products, with more than 102,000 victims and losses of about 19.98 billion yuan.
- • Open questions include whether victims can prove enforceable rights and whether compensation will be based on principal losses or on bitcoin's price gains since the fraud.
Summary
Chinese authorities have begun procedures to confiscate bitcoin worth about $5 billion, along with millions of units of XRP and dogecoin and other cryptocurrencies, in connection with a major investment fraud case. According to blockchain outlet U.Today, the Tianjin Second Intermediate People's Court accepted an application to forfeit seized cryptocurrencies belonging to Chen Zhimin, who was found guilty of money laundering. The court said on October 13 that it formally accepted the application on September 28.
The assets identified by Chinese prosecutors include 61,896.41552945 bitcoin, valued at about $5 billion based on recent prices. The forfeiture application also covers XRP, dogecoin, bitcoin cash, bitcoin gold and bitcoin SV, as well as U.S. dollars, euros and British pounds in cash, jewellery, bank deposits and investment portfolios. The dogecoin holdings were already liquidated by British judicial authorities and deposited into an interest-bearing account.
The case stems from the Tianjin Lantian Gerui Electronic Technology fraud. Prosecutors allege Chen illegally raised about 40.38 billion yuan from April 2014 to August 2017 by selling fake investment products promising high returns. More than 102,000 victims were tallied, with losses of about 19.98 billion yuan. Investigators believe much of the money was used to repay earlier investors, run the fraudulent business and buy assets including bitcoin, real estate, vehicles and jewellery. Chen left China in 2017 for Britain, where authorities seized his cryptocurrency holdings. A British court sentenced him to 11 years and eight months in prison in November 2025 on money laundering charges.
The final destination of the bitcoin remains contested. Britain's High Court ruled on October 12 that Chinese law should apply to victims' claims seeking return of the seized cryptocurrencies, but the ruling alone did not determine ownership. The court did not reach a final conclusion on whether victims may claim compensation based on principal losses or on gains from bitcoin's price rise since the fraud. A Chinese court has also opened a six-month participation period, during which interested parties, including Chen's relatives and victim investors, may take part in the forfeiture process. Legal disputes are expected to continue over the destination of the holdings and the scope of victim recoveries as the Chinese and British proceedings intersect.
The assets identified by Chinese prosecutors include 61,896.41552945 bitcoin, valued at about $5 billion based on recent prices. The forfeiture application also covers XRP, dogecoin, bitcoin cash, bitcoin gold and bitcoin SV, as well as U.S. dollars, euros and British pounds in cash, jewellery, bank deposits and investment portfolios. The dogecoin holdings were already liquidated by British judicial authorities and deposited into an interest-bearing account.
The case stems from the Tianjin Lantian Gerui Electronic Technology fraud. Prosecutors allege Chen illegally raised about 40.38 billion yuan from April 2014 to August 2017 by selling fake investment products promising high returns. More than 102,000 victims were tallied, with losses of about 19.98 billion yuan. Investigators believe much of the money was used to repay earlier investors, run the fraudulent business and buy assets including bitcoin, real estate, vehicles and jewellery. Chen left China in 2017 for Britain, where authorities seized his cryptocurrency holdings. A British court sentenced him to 11 years and eight months in prison in November 2025 on money laundering charges.
The final destination of the bitcoin remains contested. Britain's High Court ruled on October 12 that Chinese law should apply to victims' claims seeking return of the seized cryptocurrencies, but the ruling alone did not determine ownership. The court did not reach a final conclusion on whether victims may claim compensation based on principal losses or on gains from bitcoin's price rise since the fraud. A Chinese court has also opened a six-month participation period, during which interested parties, including Chen's relatives and victim investors, may take part in the forfeiture process. Legal disputes are expected to continue over the destination of the holdings and the scope of victim recoveries as the Chinese and British proceedings intersect.
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