London’s High Court ruled on Oct. 12, 2026, that Chinese law must govern claims by victims of a large-scale investment fraud in China to 61,000 BTC confiscated in the UK. The decision could complicate efforts to return the cryptocurrency to investors and increase the likelihood that a significant portion remains under British state control.

Judge Mark Turner issued the decision in a case involving bitcoin worth about £3.8 billion ($5 billion). UK police seized the assets during an investigation into Chinese national Zhimin Qian, who later pleaded guilty to charges related to possessing and transferring criminal property.

According to the case materials, Tianjin Lantian Gerui Electronic Technology operated under Qian’s control from 2014 to 2017 and raised money through several pyramid schemes. The schemes involved more than 128,000 investment contracts and collected about 40.2 billion yuan (£4.1 billion).

The organizers converted some of the proceeds into bitcoin through the Huobi cryptocurrency exchange, now known as HTX, as well as through over-the-counter trades and mining. Qian later left China and moved to the UK.

Affected investors sought recognition under UK law of property rights to the seized cryptocurrency. Prosecutors argued that Chinese law should apply because the fraud occurred primarily in China.

Turner sided with the prosecution, finding that the deception of investors, signing of contracts, transfer of funds and resulting financial losses were connected to China. Chinese law should therefore determine whether the claimants have property rights to the bitcoin, according to the ruling.

The court also distinguished a right to seek repayment of invested funds from ownership of specific assets. The victims must establish legal title to the confiscated cryptocurrency, rather than merely show that they suffered losses.

The ruling did not determine the bitcoin’s ultimate owner or its final disposition. About 16,000 Chinese investors have joined the UK proceedings, but their claims could potentially be limited to their original investments and interest, excluding the multiple-fold rise in bitcoin’s price.

Fieldfisher, the law firm representing the claimants, intends to appeal. Further hearings are expected to consider whether the victims have property rights to the seized BTC under Chinese law.

Fraud and money-laundering case

Between 2014 and 2017, Qian operated investment schemes that promised high returns. The schemes raised money under the guise of investments in digital currencies, insurance products, air-purification equipment and elder-care services, among other products.

Chinese law enforcement attempted to detain Qian in July 2017, but she evaded capture. She first moved to Myanmar and later entered the UK using forged documents.

In London, Qian met Jian Wen, who later helped her convert cryptocurrency into cash, jewelry and other assets. British police conducted searches in October and November 2018 and seized devices that provided access to the bitcoin.

In January 2024, it became known that investigators had found 61,000 BTC on the devices. When authorities identified the assets in 2021, they were worth about £1.4 billion ($1.78 billion).

Qian pleaded guilty in September 2025 to two charges related to possessing and transferring criminal property. The seized cryptocurrency was valued at about $6.7 billion at the time.

Southwark Crown Court sentenced her in November 2025 to 11 years and eight months in prison for laundering funds through bitcoin. Investigators described Qian as the organizer of a large-scale criminal scheme that harmed thousands of Chinese investors.

The criminal proceedings did not determine how the seized assets should be distributed. The victims continue to pursue their claims through civil proceedings.

Source: Incrypted