China Moves to Confiscate 61,800 Bitcoin Tied to $5.7B Qian Zhimin Fraud Scheme

Chinese prosecutors have initiated formal proceedings to confiscate more than 61,800 $BTC and additional cryptocurrency holdings connected to an alleged 40.378 billion yuan ($5.7 billion) wealth-management fraud, according to a report by The Paper cited by CoinDesk ¹. The case centers on Qian Zhimin, the alleged operator of Tianjin Lantian Gree Electronic Technology, whose unlicensed investment operation reportedly left over 102,000 investors with nearly 20 billion yuan in unrecovered losses between 2014 and 2017 ¹.

Prosecutors allege that the enterprise operated as a Ponzi scheme, pitching guaranteed principal and inflated returns while redirecting customer deposits into real estate, luxury items, and substantial cryptocurrency reserves ¹. Qian absconded from China in 2017 and relocated to the United Kingdom, where law enforcement officials ultimately impounded the funds ¹. Alongside the primary Bitcoin cache, seized property included Bitcoin Cash, Bitcoin Gold, Bitcoin SV, Ripple, Dogecoin, cash, and jewelry ¹.

Cross-Border Jurisdictional Maneuvering

The domestic forfeiture push comes after the UK High Court considered the applicable law in the multi-billion pound seizure, ruling that Chinese law must determine whether victims hold valid proprietary rights over the seized assets ¹. On Oct. 13, the Tianjin Second Intermediate People's Court admitted the prosecutors' petition to designate the holdings as illegal gains, opening a statutory six-month window for victims and claimants to enter the proceeding ¹.

While British courts continue to evaluate claims under Chinese civil and property principles, legal counsel representing several defrauded participants are pursuing appeals against the jurisdictional decision ¹. Unregistered victims retain an avenue to seek proportional compensation from any recovered capital that Chinese authorities ultimately secure ¹.