China Goes After 61,800 BTC. Fraud Victims Have Six Months to Stake Their Claim

Chinese prosecutors are seeking to confiscate more than 61,800 BTC and other assets linked to an alleged fraud worth over 40 billion yuan, roughly $5.7 billion, according to The Paper. The scheme affected more than 102,000 investors and centers on Qian Zhimin, whom prosecutors describe as the controller of Tianjin Lantian Gree Electronic Technology.

According to prosecutors, from 2014 to 2017, Tianjin Lantian Gree Electronic Technology sold unlicensed wealth-management products across China, promising guaranteed principal and high returns. It raised more than 40.378 billion yuan from more than 102,000 investors, who lost nearly 20 billion yuan. Prosecutors say the funds were used to repay earlier investors, run fake investment projects, buy Bitcoin and acquire property, cars and jewelry rather than finance real businesses.

Qian fled China in 2017 and later settled in the UK. British authorities eventually seized his assets, including more than 61,800 bitcoin, plus bitcoin cash, bitcoin gold, bitcoin SV, ripple, dogecoin, cash, jewelry and investment holdings.

On Oct. 13, Tianjin’s Second Intermediate People’s Court said it had accepted prosecutors’ request to confiscate the assets as illegal gains. The court has opened a six-month period for victims and other interested parties to join the case. Victims who do not participate can still seek refunds from recovered assets.

The request comes days after a U.K. High Court ruled that Chinese law, rather than English law, should govern alleged victims’ claims to the more than 61,000 BTC seized in Britain. The ruling does not mean that victims can never recover the coins; it calls for assessing whether they have a property claim under Chinese law, with further hearings expected. Lawyers for some victims are seeking to appeal.