Key Takeaways
- • A Tianjin Second Intermediate People's Court accepted prosecutors' October 13 request to confiscate 61,896 Bitcoin and other crypto assets linked to Qian Zhimin and the Lantian Gree fundraising scheme, according to Coinpedia.
- • The alleged scheme raised more than 40.378 billion yuan (about $5.6 billion) between April 2014 and August 2017 from more than 102,000 investors, who suffered losses of over 19.977 billion yuan.
- • A UK High Court ruling that Chinese law should govern the ownership dispute over roughly 61,000 Bitcoin could determine whether victims benefit from the Bitcoin's price gains; Fieldfisher, representing some victims, is seeking to appeal.
- • The Tianjin court has opened a six-month registration period for victims and interested parties, with a hearing expected afterward; confiscation does not guarantee immediate repayment.
Summary
A court in Tianjin has accepted prosecutors' request to confiscate 61,896 Bitcoin and other crypto assets tied to an alleged fundraising fraud run by Qian Zhimin through Lantian Gree, according to Coinpedia. The Tianjin Second Intermediate People's Court accepted the request on October 13, after prosecutors filed it on September 28. The alleged scheme raised more than 40.378 billion yuan (about $5.6 billion) between April 2014 and August 2017 by selling investment products that promised high returns and guaranteed repayment. More than 102,000 investors suffered losses of over 19.977 billion yuan.
Per prosecutors, the proceeds were used to repay earlier investors, buy Bitcoin, fund fake investment projects, and purchase properties, cars and jewelry. Qian allegedly left China in July 2017 with a computer containing his Bitcoin wallet and later settled in the UK.
The confiscation request extends beyond Bitcoin. The court listed around 72,745 each of Bitcoin Cash, Bitcoin Gold and Bitcoin SV, more than 3.6 million XRP, and more than 70 million Dogecoin, along with cash in several currencies, jewelry, bank balances and investments. UK authorities have seized assets linked to the case, and some cryptocurrency holdings have been converted into other forms.
A legal dispute in the UK over ownership of around 61,000 Bitcoin, and over who should receive the gains from their price increase, adds complexity. According to the report, the UK High Court ruled that Chinese law should apply rather than UK law. The UK Crown Prosecution Service has said victims could be compensated through a process in China, and further hearings will examine whether victims can prove their claims. Law firm Fieldfisher, which represents some victims, is seeking to appeal the ruling.
The Tianjin court has opened a six-month period for victims and other interested parties to register through its online platform, with a hearing expected after it closes. Accepting the confiscation request does not mean the case is concluded or that victims will be repaid immediately. The final decision will determine how the assets are recovered and how much can be returned to those who lost money.
Per prosecutors, the proceeds were used to repay earlier investors, buy Bitcoin, fund fake investment projects, and purchase properties, cars and jewelry. Qian allegedly left China in July 2017 with a computer containing his Bitcoin wallet and later settled in the UK.
The confiscation request extends beyond Bitcoin. The court listed around 72,745 each of Bitcoin Cash, Bitcoin Gold and Bitcoin SV, more than 3.6 million XRP, and more than 70 million Dogecoin, along with cash in several currencies, jewelry, bank balances and investments. UK authorities have seized assets linked to the case, and some cryptocurrency holdings have been converted into other forms.
A legal dispute in the UK over ownership of around 61,000 Bitcoin, and over who should receive the gains from their price increase, adds complexity. According to the report, the UK High Court ruled that Chinese law should apply rather than UK law. The UK Crown Prosecution Service has said victims could be compensated through a process in China, and further hearings will examine whether victims can prove their claims. Law firm Fieldfisher, which represents some victims, is seeking to appeal the ruling.
The Tianjin court has opened a six-month period for victims and other interested parties to register through its online platform, with a hearing expected after it closes. Accepting the confiscation request does not mean the case is concluded or that victims will be repaid immediately. The final decision will determine how the assets are recovered and how much can be returned to those who lost money.
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