UK court ruling complicates recovery of 61,000 Bitcoin tied to China fraud
London’s High Court has ruled that claims over 61,000 seized bitcoins linked to a Chinese fraud will be assessed under Chinese law rather than English law. The decision does not yet award the assets, estimated at £3.8 billion or about $5 billion, to the UK or determine which victims may be compensated. The fraud took place in China between 2014 and 2017, and victims will need to prove ownership of the cryptocurrencies.
The London High Court's preliminary decision, issued 12 October, concerns civil claims over roughly 61,000 bitcoins seized by UK police. Judge Mark Turner found the alleged fraud's core events—misstatements, losses, and contractual dealings—occurred in China, so Chinese law should govern ownership claims despite the coins being held in Britain.
The underlying case involves Zhimin Qian, also called Yadi Zhang, who admitted running a fraudulent investment scheme from 2014 to 2017. Records cited at least 128,409 investment contracts, with over 100,000 BTC reportedly bought via Huobi using collected funds. Police seizures began in October 2018; the recovered coins are now valued at about £3.8 billion.
The ruling may affect thousands of Chinese investors seeking compensation, as proving ownership under Chinese law could be slower or harder. It could also influence how UK authorities handle seized crypto, potentially strengthening their position to retain assets if claims fail. More broadly, the case may shape expectations for cross-border crypto recovery, showing that where assets are held may not determine which law applies.