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TODAY IN LONDON - $7 billion Bitcoin fraud trial begins AND could redefine crypto justice in the UK

22/09/2025

The trial of the alleged mastermind of a $7 billion cross-border investment fraud is set to begin in London on September 29, with the case expected to set precedents for how authorities in the UK handle compensation for crypto-related financial crime.

The defendant, Zhimin Qian, a Chinese national, is the alleged organiser of a fraudulent investment scheme that victimised nearly 130,000 investors in China.

She is alleged to have operated the Tianjin Lantian Gerui Electronic Technology Company, which between 2014 and 2017 sought customers for a Ponzi-style investment product that offered returns of between 100% and 300%.

The scheme collapsed in 2017 after China’s blanket ban on cryptocurrency activities, with Qian fleeing to the UK that same year, having laundered the scheme’s proceeds into Bitcoin, now worth around $7 billion.

British authorities were able to seize 61,000 BTC between 2018 and 2021, as part of anti-money laundering investigations into Qian’s co-conspirator Jian Wen, a onetime takeout worker who was found guilty of money laundering in March 2024.

Qian is now facing her own trial, yet the complexities of the case could make it challenging to secure a conviction, according to legal experts.

KEY FACTS

Here’s a detailed, up-to-date summary of the Zhimin Qian/Tianjin Lantian Gerui case and its significance for UK crypto crime law:

Overview: The $7 Billion Crypto Fraud Trial in London

  • Who: Zhimin Qian (aka Yadi Zhang), a Chinese national, is alleged to be the mastermind behind a $7 billion cross-border Ponzi-style investment fraud.
  • What: Qian ran Tianjin Lantian Gerui Electronic Technology Company in China, which, between 2014 and 2017, attracted nearly 130,000 investors with promises of 100–300% returns.
  • How: The scheme collapsed after China’s 2017 ban on crypto. Qian fled to the UK, laundering proceeds into Bitcoin—now worth about $7 billion.
  • Seizure: UK authorities seized 61,000 BTC (one of the largest crypto seizures ever) between 2018 and 2021, during investigations into Qian’s associate, Jian Wen, who was convicted of money laundering in March 2024.

Legal Complexities & Precedent

  • Charges: Qian is not being prosecuted for fraud (since the fraud occurred in China, with no direct UK victims or financial flows). Instead, she faces charges for unlawful possession and transfer of cryptocurrency, and acquisition/use/possession of criminal property.
  • Evidence Challenges: UK prosecutors face hurdles gathering evidence from China (victim statements, company records, etc.), making conviction difficult. The Crown Prosecution Service (CPS) is focusing on crypto possession and proceeds of crime, rather than the underlying fraud.
  • Civil Recovery: The CPS has started civil recovery proceedings under the Proceeds of Crime Act (POCA) to recover the seized Bitcoin. A Property Freezing Order is in place, and the High Court will decide the fate of the assets.

Section 329 is a money laundering offence.

Under UK law, specifically the Proceeds of Crime Act 2002 (POCA), the acquisition, use, or possession of criminal property is indeed one of the three core money laundering offences, alongside:

  1. Concealing, disguising, converting, transferring, or removing criminal property (Section 327),
  2. Entering into arrangements to facilitate the acquisition, retention, use, or control of criminal property (Section 328),
  3. Acquiring, using, or possessing criminal property (Section 329).

In the context of Zhimin Qian, the Crown Prosecution Service (CPS) appears to be avoiding direct prosecution for the original fraud or laundering the proceeds of that fraud, likely due to:

  • Jurisdictional limits (the fraud occurred in China),
  • Lack of UK-based victims or financial flows, and
  • Evidentiary challenges (e.g. obtaining admissible evidence from Chinese authorities).

Instead, the CPS is focusing on the possession and use of criminal property (Bitcoin) within the UK, which still constitutes a money laundering offence under POCA, but is more straightforward to prosecute based on UK-based evidence (e.g., wallet access, property purchases, etc.).

Victim Compensation & International Implications

  • Victims: Over 128,000 Chinese investors are recognised as victims. Many have already received partial compensation in China, but thousands are seeking the return of the seized Bitcoin from the UK.
  • Asset Return: The UK is considering its international obligations regarding asset return. Victims can make legal claims in the UK High Court, and the outcome could set a precedent for how UK courts handle compensation in cross-border crypto fraud cases.
  • Potential Supreme Court Case: If disputes over Bitcoin ownership and compensation escalate, the case could reach the UK Supreme Court, shaping future crypto asset recovery law.

Why This Case Matters

  • Legal Firsts: This is the largest crypto-related asset seizure and one of the first major UK cases to test how courts handle compensation for overseas victims of crypto fraud.
  • Cross-Border Enforcement: The case highlights the challenges of prosecuting cross-border crypto crime, mainly when the underlying fraud occurred outside the UK.
  • Crypto Asset Recovery: The outcome will influence how UK authorities and courts approach the seizure, management, and distribution of crypto assets linked to international financial crime.


References

UNITED KINGDOM FRAUD CRYPTO MONEY LAUNDERING

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As well as owning and publishing Comsure's copyrighted works, Comsure wishes to use the copyright-protected works of others. To do so, Comsure is applying for exemptions in the UK copyright law. There are certain very specific situations where Comsure is permitted to do so without seeking permission from the owner. These exemptions are in the copyright sections of the Copyright, Designs and Patents Act 1988 (as amended)[www.gov.UK/government/publications/copyright-acts-and-related-laws]. Many situations allow for Comsure to apply for exemptions. These include 1] Non-commercial research and private study, 2] Criticism, review and reporting of current events, 3] the copying of works in any medium as long as the use is to illustrate a point. 4] no posting is for commercial purposes [payment]. (for a full list of exemptions, please read here www.gov.uk/guidance/exceptions-to-copyright]. Concerning the exceptions, Comsure will acknowledge the work of the source author by providing a link to the source material. Comsure claims no ownership of non-Comsure content. The non-Comsure articles posted on the Comsure website are deemed important, relevant, and newsworthy to a Comsure audience (e.g. regulated financial services and professional firms [DNFSBs]). Comsure does not wish to take any credit for the publication, and the publication can be read in full in its original form if you click the articles link that always accompanies the news item. Also, Comsure does not seek any payment for highlighting these important articles. If you want any article removed, Comsure will automatically do so on a reasonable request if you email info@comsuregroup.com.  

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As well as owning and publishing Comsure's copyrighted works, Comsure wishes to use the copyright-protected works of others. To do so, Comsure is applying for exemptions in the UK copyright law. There are certain very specific situations where Comsure is permitted to do so without seeking permission from the owner. These exemptions are in the copyright sections of the Copyright, Designs and Patents Act 1988 (as amended)[www.gov.UK/government/publications/copyright-acts-and-related-laws]. Many situations allow for Comsure to apply for exemptions. These include 1] Non-commercial research and private study, 2] Criticism, review and reporting of current events, 3] the copying of works in any medium as long as the use is to illustrate a point. 4] no posting is for commercial purposes [payment]. (for a full list of exemptions, please read here www.gov.uk/guidance/exceptions-to-copyright]. Concerning the exceptions, Comsure will acknowledge the work of the source author by providing a link to the source material. Comsure claims no ownership of non-Comsure content. The non-Comsure articles posted on the Comsure website are deemed important, relevant, and newsworthy to a Comsure audience (e.g. regulated financial services and professional firms [DNFSBs]). Comsure does not wish to take any credit for the publication, and the publication can be read in full in its original form if you click the articles link that always accompanies the news item. Also, Comsure does not seek any payment for highlighting these important articles. If you want any article removed, Comsure will automatically do so on a reasonable request if you email info@comsuregroup.com.