China Seeks to Seize 61,800 Bitcoin Held in UK Over $5.7B Fraud
Author: Crypffalo Research · 19:57 22/10/2026
A Tianjin court has accepted a bid to confiscate over 61,800 BTC (about $5B) tied to Qian Zhimin's fraud, while the coins stay in UK custody and ownership remains contested.
A court in Tianjin, China, has accepted a prosecutors' request to confiscate more than 61,800 BTC along with other assets. The holdings are tied to an illegal fundraising scheme of roughly 40.4 billion yuan (about $5.7 billion) run by Qian Zhimin.
The catch is that every one of those bitcoin sits with UK authorities. At around $82,000 per coin on Oct 22, the stash is worth roughly $5 billion, so who ends up owning it matters for bitcoin's available supply.
Key takeaways
- Size: More than 61,800 BTC, plus over 72,700 BCH, more than 3.6 million XRP and other assets.
- The scheme: 40.378 billion yuan raised from more than 102,000 investors between 2014 and 2017.
- China's move: The Tianjin court opened a six-month window for victims and interested parties to join.
- UK stance: England's High Court ruled that Chinese law governs victims' ownership claims.
- Coin status: Still held in the UK, not moved, with no final ruling on ownership.
How the $5.7 billion fraud worked
According to Chinese outlets The Paper and Yicai, Tianjin Lantian Gerui, a firm controlled by Qian Zhimin, sold unlicensed wealth-management products from April 2014 to August 2017. It promised guaranteed principal and outsized returns to draw in savers.
The firm raised 40.378 billion yuan from over 102,000 investors. Actual victim losses came to roughly 19.9 billion to 20 billion yuan.
The money went to pay earlier investors, fund sham projects and buy bitcoin, property, cars and jewelry. Most of the bitcoin later seized was bought with those funds.
From flight to the UK to an 11-year sentence
The coins have been in legal limbo for close to a decade. Key milestones:
- July 2017: Qian left China with a computer holding crypto wallet access and entered Britain on a St. Kitts and Nevis passport under the name Yadi Zhang.
- Oct–Nov 2018: London police searched a property and a safe deposit box, recovering devices and private keys.
- 2024: Associate Jian Wen was jailed for six years and eight months for laundering linked crypto; Qian was arrested in April.
- Sept 2025: Qian pleaded guilty to money laundering in the UK.
- Nov 2025: Southwark Crown Court sentenced Qian to 11 years and eight months.
- Sept 28, 2026: The Tianjin court formally accepted the confiscation request, announcing it publicly on Oct 13.
A UK-China tug-of-war over the coins
In an Oct 12 judgment, High Court Justice Mark Turner found that Chinese law, not English law, should govern victims' ownership claims. He reasoned that the investments, the alleged wrongdoing and the bitcoin purchases all took place in China.
The ruling did not decide whether individual investors are entitled to the bitcoin, or whether any recovery includes gains made since the seizure. About 16,000 victims have reportedly joined the UK recovery proceedings, and lawyers for some are appealing.
British prosecutors are separately pursuing civil recovery under the Proceeds of Crime Act 2002. The Tianjin request adds yet another claimant to an already crowded case.
What it means for crypto markets
The news lands on a soft tape. Bitcoin slipped back below $82,000 on Oct 22 after touching $84,000 a day earlier, weighed by high oil prices and renewed doubts over AI stocks. There is no sign the seized coins are about to move.
- Bull case: Litigation drags on for years, keeping 61,800 BTC frozen and off the market in the near term.
- Risk case: A final ruling leads to liquidation for victim compensation, putting a large block of bitcoin up for sale, much like past fears around Mt. Gox repayments.
Mainland China still bans crypto trading. If the coins were ever sent there, their handling would likely differ from a UK sale or a decision to keep them.
What to watch next
- Further High Court hearings in the UK and the outcome of victims' appeals.
- The six-month joinder window at the Tianjin court, counted from the Oct 13 notice.
- Any on-chain movement from linked wallets; track market stress via real-time liquidations.
- Next week's Fed meeting on the economic calendar, which is driving bitcoin prices more directly.
Frequently Asked Questions
Where are the 61,800 BTC now?
The coins remain seized and held by UK authorities. No decision has been made to hand them to China or return them to victims.
Will the bitcoin be sold on the market soon?
There is no sign of that, as ownership is still contested in court. Any sale could only follow a final ruling.
Do victims who don't register lose their claim?
According to the Tianjin court, investors who do not join the proceedings remain eligible for compensation from recovered assets.
*This content is for information only and is not financial advice.*
Tags: Bitcoin, China, UK, Regulation, Seizure
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