Chinese authorities are seeking to confiscate approximately 61,896 Bitcoin connected to a multibillion-dollar investment fraud that affected more than 128,000 people, escalating an international dispute over one of the largest cryptocurrency seizures in law enforcement history.The Tianjin No. 2 Intermediate People’s Court announced on October 13, 2026, that it had accepted prosecutors’ confiscation application on September 28. The filing covers 61,896.41552945 BTC, alongside other cryptocurrencies, cash, jewelry and financial assets.The Bitcoin was valued at approximately $5 billion in recent October reporting. Separately, the underlying fraudulent fundraising operation collected more than 40 billion yuan, approximately $5.7 billion at historical exchange rates. These figures represent different measures and should not be conflated.The assets are connected to Qian Zhimin, also known as Yadi Zhang, who was sentenced in Britain in November 2025 to 11 years and eight months in prison for cryptocurrency-related money laundering offenses.Although Chinese prosecutors are seeking confiscation, British authorities currently control the seized Bitcoin. Any Chinese confiscation order would not automatically transfer the cryptocurrency from UK custody.
Tianjin Prosecutors Target Bitcoin From 2014–2017 Fraud
According to Chinese court disclosures, Qian controlled Tianjin Lantian Gerui Electronic Technology, which marketed fraudulent investment products between April 2014 and August 2017.The operation attracted funds from more than 128,000 investors, including individuals who committed retirement savings and other substantial personal assets. Following investigations by Chinese authorities, Qian fled the country in 2017 and subsequently entered Britain using a St Kitts and Nevis passport under an assumed identity.British investigators began examining suspicious cryptocurrency-related property transactions in 2018. Searches subsequently uncovered digital devices and private keys linked to substantial Bitcoin holdings. The Metropolitan Police ultimately seized more than 61,000 BTC, establishing the UK’s largest cryptocurrency seizure.Qian pleaded guilty in September 2025 to acquiring and possessing criminal property. Her accomplices, including Jian Wen and Seng Hok Ling, received separate prison sentences for their roles in laundering illicit proceeds.The Chinese confiscation application also encompasses other digital assets, including XRP, Dogecoin, Bitcoin Cash, Bitcoin Gold and Bitcoin SV, alongside conventional financial holdings.
UK Court Ruling Complicates Victim Compensation Claims
The confiscation proceedings overlap with a significant British High Court ruling issued on October 12. In Director of Public Prosecutions v Qian, Justice Mark Turner determined that Chinese law governs whether defrauded investors possess proprietary rights over the seized Bitcoin.The decision concerns more than 61,000 BTC recovered by UK authorities and subject to civil recovery proceedings under Britain’s Proceeds of Crime Act. Approximately 16,000 Chinese claimants subsequently obtained permission to appeal the ruling, according to an October 21 report by Caixin. The distinction between compensation claims and property ownership is particularly consequential because Bitcoin’s value has increased substantially since the original investments.If victims establish enforceable ownership rights, their potential recoveries could differ significantly from repayment limited to their original losses. British prosecutors are separately pursuing civil recovery of the assets, creating competing legal questions involving criminal proceeds, victims’ rights and cross-border enforcement.Neither the Chinese confiscation application nor the UK ruling establishes that investors will receive the cryptocurrency or its full appreciated value.The ultimate distribution of the Bitcoin remains unresolved, with further proceedings expected to clarify ownership and recovery rights.
