High Court of London Rules That Claims to 61,000 Seized Bitcoins Must Be Tried Under Chinese Law

The High Court of England and Wales has officially ruled that the ownership claims of thousands of investors seeking the return of 61,000 Bitcoin (valued at over $5 billion) must be evaluated and determined under the jurisdiction of Chinese law

The sprawling legal saga stems from a massive multi-year Ponzi and money laundering scheme orchestrated between 2014 and 2017 by Chinese citizen Zhimin Qian (also known as Yadi Zhang).

Operating through a company named Lantian Gerui, Qian defrauded approximately 128,000 Chinese investors out of billions of Yuan by promising exorbitant returns on bogus cryptocurrency mining and high-tech investments. After converting the stolen capital into Bitcoin, Qian fled to the United Kingdom using a fake identity.

In late 2018, British Metropolitan Police raided properties linked to Qian and her accomplices, seizing digital devices containing private keys that gave law enforcement control over 61,000 BTC. Qian was subsequently sentenced to 11 years in prison by a British court.

The Court Ruling

A group of roughly 5,700 Chinese investors filed legal actions in London demanding the immediate return of the confiscated Bitcoin, hoping to leverage English property law to establish direct ownership.

However, High Court Judge Mark Turner rejected that framework. The court ruled that because the initial fraud, the signing of the fraudulent investment agreements, the transfer of fiat funds, and the initial financial losses all occurred within China, Chinese civil law must govern the core dispute.

The fact that the physical digital assets and private keys are currently held and secured by British authorities does not override the geographical origin of the underlying transactions.

What’s Next for the $5 Billion Bitcoin Fortune?

The High Court’s decision does not mean the victims have lost their claims entirely, but it significantly complicates and prolongs the recovery process.

The case will remain in London, but future proceedings will require specialized expert testimony on Chinese property and financial law to determine how defrauded foreign investors can legally establish ownership rights over assets held by a foreign government.

Consequently, the ultimate destination of the multi-billion-dollar Bitcoin stockpile remains unresolved as the legal wrangling enters its next phase.

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