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Following a global fraud investigation, a Chinese national has been convicted in connection with what is believed to be the world’s largest cryptocurrency seizure.
The Metropolitan Police reported recovering 61,000 Bitcoin, currently valued at over £5 billion ($6.7 billion).
Zhimin Qian, also known as Yadi Zhang, pleaded guilty on Monday at Southwark Crown Court to illegally acquiring and possessing the cryptocurrency.
A second individual appeared in court on Tuesday and admitted to their involvement in the scheme.
Seng Hok Ling, a Malaysian national residing in Matlock, Derbyshire, pleaded guilty at Southwark Crown Court to entering into a money laundering arrangement on or before April 23, 2024.
The charge indicates that he was dealing in cryptocurrency on Qian’s behalf, “knowing or suspecting his actions would facilitate the acquisition or control of criminal property by another.”
Between 2014 and 2017, Qian orchestrated a large-scale scam in China, defrauding more than 128,000 victims and storing the illicit funds in Bitcoin, according to a statement from the Met.
The agency stated that the 47-year-old’s guilty plea followed a seven-year investigation into a global money laundering network, which began with a tip-off regarding the transfer of criminal assets.
Detective Sergeant Isabella Grotto, who led the Met’s investigation, stated that Qian had been “evading justice” for five years prior to her arrest, necessitating a complex, multi-jurisdictional investigation.
She fled China using falsified documents and entered the UK, where she allegedly attempted to launder the stolen money through property purchases, the Met added.
“By pleading guilty today, Ms. Zhang hopes to bring some comfort to investors who have waited since 2017 for compensation, and to reassure them that the significant rise in cryptocurrency values means there are more than sufficient funds available to repay their losses,” said Qian’s solicitor, Roger Sahota, of Berkeley Square Solicitors.
The Court heard on Tuesday that confiscation proceedings have commenced to recover over £16.2 million from Ling, a figure that will be adjusted to reflect current cryptocurrency values at his sentencing in November.
Reports suggest the UK government intends to retain the seized funds.
The BBC has reached out to the Treasury and the Home Office for comment.
Recent reforms to crime legislation by the previous Conservative government were designed to streamline the process for UK authorities to seize, freeze, and recover crypto assets.
These changes also enable certain victims to apply for the release of assets held in implicated accounts.
Qian received assistance from Jian Wen, a Chinese takeaway worker, who was sentenced to six years and eight months in prison last year for her involvement in the criminal operation.
Wen, 44, laundered the proceeds from the scam and progressed from living above a restaurant to residing in a “multi-million pound rented house” in north London, the Crown Prosecution Service (CPS) stated earlier this year.
She also acquired two properties in Dubai worth over £500,000, according to the CPS.
The Met Police reported seizing over £300 million worth of Bitcoin from Wen.
Chinese media outlet Lifeweek reported in 2024 that investors, predominantly aged between 50 and 75, had invested “hundreds of thousands to tens of millions” of yuan in ventures promoted by Qian.
Some victims, including business professionals, bank employees, and members of the judiciary, were reportedly encouraged to invest in Qian’s scheme through recommendations from friends and family.
Investors reportedly had limited knowledge of Qian, who was characterized as a “goddess of wealth.”
“Bitcoin and other cryptocurrencies are increasingly being used by organised criminals to disguise and transfer assets, so that fraudsters may enjoy the benefits of their criminal conduct,” stated deputy chief Crown prosecutor, Robin Weyell.
“This case, involving the largest cryptocurrency seizure in the UK, illustrates the scale of criminal proceeds available to those fraudsters.”
Monday’s conviction signifies the “culmination of years of dedicated investigation,” involving both the police and Chinese law enforcement agencies, said Will Lyne, the Met’s Head of Economic and Cybercrime Command.
Qian remains in custody pending sentencing, scheduled for November 10, as part of a two-day hearing in which Seng Hok Ling is also required to appear.
UK Security Minister Dan Jarvis stated that the conviction sent a “clear signal” that the UK is not a “safe haven” for criminals.
“Money laundering erodes trust, undermines our economy, and fuels the rise of serious organised crime,” he said in a statement.
The BBC has contacted the Chinese embassy in the UK for comment.
Additional reporting by Tony Han, Journalist, BBC Global China Unit.
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