The UK is at the heart of a big court fight over the seizure of 61,000 Bitcoin (BTC) that were tied to a huge fraud enterprise located in China. Officials are debating whether victims should get the current value of the seized Bitcoin, worth over $7 billion, or just their original investment.
How the UK Bitcoin Seizure Started
he lawsuit goes back to a major crypto scam in China that took place from 2014 to 2017 and stole money from over 128,000 investors. The mastermind, Zhimin Qian also known as “Yadi Zhang” escaped to the UK under a fictitious name once the plan crumbled.
During a raid in 2018, London’s Metropolitan Police seized encrypted devices that had 61,000 BTC. At that time, the Bitcoin was worth roughly £640 million. Today, the stockpile is worth over $7 billion, making it one of the greatest Bitcoin seizures in the UK’s history.
Qian recently pled guilty to accusations of obtaining and holding illicit property, while her partner, Jian Wen, was convicted in 2024 for laundering some of the stolen monies.
Victims Want Full Market Value for Seized Bitcoin
The big issue now is whether the crypto scam victims would be reimbursed at today’s Bitcoin price or merely the initial amount of their losses.
Under the Proceeds of Crime Act, confiscated assets in the UK are normally given over to the government, with courts deciding on compensation for victims. Some authorities feel restitution should only cover initial investments, meaning the UK government may keep billions in Bitcoin earnings.
However, victims contend that it is the Bitcoin, not the state, and that withholding the market profits would be unfair. Many have demanded that they get the entire market value of the confiscated Bitcoin, not just the baseline amount.
International Pressure on the UK Government
The case has also gained worldwide interest. Victims in China have encouraged Beijing to lobby the UK for the recovery of their crypto assets. If the UK preserves the profit from the confiscated Bitcoin case, it might strain diplomatic relations and raise doubts about justice in managing digital asset recovery.
Legal experts anticipate the case to reach the UK High Court, where judges may need to explain whether victims are entitled to appreciation in crypto value.
Why This UK Bitcoin Seizure Matters
The result of this case might create a worldwide precedent for crypto fraud trials and government authorities over stolen digital assets. If the UK votes to retain the Bitcoin earnings, it would boost governmental power but possibly diminish safeguards for victims. On the other hand, paying victims the present $7 billion worth would signify a win for investor rights but limit the government’s financial advantage from seizures.
For now, the confiscated 61,000 BTC remains in legal limbo. The ultimate ruling will not only impact thousands of fraud victims in China but may also determine how future Bitcoin seizures and crypto fraud restitution cases are handled internationally.
Source: Adapted from reporting by Cointelegraph
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