From Coinpedia · By Nidhi Kolhapur
China is seeking to seize 61,896 Bitcoin worth billions of dollars linked to a fundraising fraud that caused losses of nearly 20 billion yuan for investors. A court in Tianjin has accepted prosecutors’ request to confiscate the Bitcoin and other assets linked to Qian Zhimin, who allegedly ran the scheme through Lantian Gree.
The case could affect how much money victims recover and who gets the profits from Bitcoin’s rise in value.
China Seeks to Confiscate 61,896 Bitcoin
On October 13, the Tianjin Second Intermediate People’s Court accepted a request filed by prosecutors on September 28 to seize the assets linked to Qian.
Between April 2014 and August 2017, Qian allegedly raised more than 40.378 billion yuan ($5.6 billion) by selling investment products that promised high returns and guaranteed repayment. The scheme attracted more than 102,000 investors, who suffered losses of over 19.977 billion yuan.
Prosecutors said the money was used to repay earlier investors, buy Bitcoin, fund fake investment projects and purchase properties, cars and jewelry.
Qian allegedly left China in July 2017 with a computer containing his Bitcoin wallet and later settled in the UK.
XRP, Dogecoin and Other Assets Also Involved
The confiscation request includes more than Bitcoin. Other assets listed by the court include:
Around 72,745 Bitcoin Cash
Around 72,745 Bitcoin Gold
Around 72,745 Bitcoin SV
More than 3.6 million XRP
More than 70 million Dogecoin
The assets also include cash in different currencies, jewelry, bank balances and investments. UK authorities have seized assets linked to the case, and some cryptocurrency holdings have been converted into other forms.
Chinese prosecutors want these assets recovered, with money owed to victims returned where applicable.
UK Court Dispute Could Affect Bitcoin Profits
The case also faces a legal dispute in the UK over who owns around 61,000 Bitcoin and who should receive the profits from their price increase.
According to the report, the UK High Court ruled that Chinese law should apply to the ownership dispute rather than UK law. The decision could affect how victims claim the Bitcoin and its gains.
The UK’s Crown Prosecution Service has said victims could receive compensation through a process in China. Further hearings are expected to examine whether victims can prove their claims to the Bitcoin.
Law firm Fieldfisher, which represents some victims, is seeking to appeal the ruling.
When Will Victims Get Their Money Back?
The Tianjin court has opened a six-month period for victims and other interested parties to register for the proceedings. Victims can apply through the court’s online platform.