Chinese Fraudster Found Guilty in UK of £5 Billion Bitcoin Scam, Biggest Crypto Seizure in History
Zhimin Qian’s guilty plea comes after the largest bitcoin seizure in history and a seven-year international investigation into cryptocurrency laundering.
For masterminding a huge cryptocurrency scam that resulted in the largest bitcoin seizure in history, valued at over £5 billion ($6.7 billion), a Chinese person was found guilty in London.
Yadi Zhang, also known as Zhimin Qian, entered a guilty plea at Southwark Crown Court on Monday for unlawfully obtaining and holding tens of thousands of bitcoins that were acquired through a massive scam.
Between 2014 and 2017, when bitcoin was at its most popular, Qian orchestrated a scam in China that defrauded over 128,000 investors by promising them daily payments and guaranteed returns. Friends and family convinced victims, many of whom were between the ages of 50 and 75, to invest “hundreds of thousands to tens of millions” of yuan, according to Chinese media site Lifeweek.
As the largest cryptocurrency recovery in UK history, the Metropolitan Police stated that it has taken 61,000 bitcoins from Qian. According to detectives, the investigation started in 2018 in response to a tip regarding questionable transfers of illicit assets.
The 47-year-old Qian tried to launder the stolen cash through real estate transactions after fleeing China with fictitious passports and arriving in the UK. The Met’s lead investigator, Detective Sergeant Isabella Grotto, stated that she had been avoiding justice for five years. “A complex, multi-jurisdictional effort was required to arrest her.”
According to Roger Sahota of Berkeley Square Solicitors, Qian’s attorney, “Ms. Zhang hopes that by entering a guilty plea today, investors who have been waiting for compensation since 2017 will feel some relief and be reassured that the substantial increase in cryptocurrency values means there are more than sufficient funds available to repay their losses.”
Another person involved in the scam was Jian Wen, a 44-year-old takeaway worker who helped Qian launder money. Wen was given a six-year, eight-month prison sentence last year after it was disclosed by prosecutors that she had bought two homes in Dubai valued at over £500,000 and had relocated from a restaurant above a multimillion-pound house in North London. The Met reported that it has confiscated over £300 million worth of bitcoin from Wen.
According to Deputy Chief Crown Prosecutor Robin Weyell, “organized criminals are increasingly using Bitcoin and other cryptocurrencies to transfer and conceal assets.” The biggest cryptocurrency seizure in the UK is part of this investigation, which shows how much money crooks may make.
The inquiry, according to police officials, is still underway and involves collaboration with Chinese authorities. The Crown Prosecution Service (CPS) is trying to make sure that thieves can’t get their money back. Partially compensated victims have already benefited from a compensation program established in China.
Qian is being detained for sentencing. There is no set date yet.
