Chinese prosecutors have initiated legal proceedings in Tianjin, seeking the confiscation of over 61,800 Bitcoins tied to a substantial investment fraud estimated at $5.7 billion. This legal action has sparked a jurisdictional dispute involving the United Kingdom, where these assets are currently located.
According to a report from the Chinese financial media portal Yicai, the Tianjin No. 2 Intermediate People’s Court commenced review of this case on September 28, allowing victims and interested parties a six-month window to present their claims.
Assets in Question
The prosecutors’ request encompasses not only Bitcoin but also a variety of other cryptocurrencies, including Bitcoin Cash, Bitcoin Gold, Bitcoin SV, XRP, and Dogecoin. In addition to digital assets, they are also pursuing cash, jewelry, bank account balances, and investment portfolios reportedly acquired through funds raised from over 102,000 investors.
This fraudulent operation unfolded from 2014 to 2017 through the entity Tianjin Lantian Gerui Electronic Technology. It involved the sale of unauthorized wealth management products that guaranteed returns far exceeding the market average.
The court indicated that a significant portion of the raised funds was used to pay earlier investors and to finance fictitious ventures, as well as for the purchase of cryptocurrencies and luxury items.
Investors who do not take part in the current legal proceedings still retain the right to claim compensation in future cases.
Jurisdictional Complications with the UK
At the center of this intricate legal scenario is Qian Zhimin, a businessman who left China in 2017 and was subsequently sentenced to 11 years and eight months in London for money laundering activities. The Metropolitan Police in London traced the Bitcoins back to him following investigations conducted in 2018. However, the ownership of these assets remains a contentious issue.
On October 12, High Court Judge Mark Turner ruled that the claims of the victims will be governed by Chinese law, yet the court has not definitively addressed whether individual investors can claim ownership of the bitcoins.
Approximately 16,000 victims are currently involved in the proceedings in the UK, with some legal representatives seeking to appeal the ruling. Additionally, British authorities are pursuing a separate civil recovery process.
Future hearings will aim to clarify how Chinese law operates in this context and what evidence is necessary to substantiate the claims made by investors.
Conclusion
The ongoing legal battles surrounding this significant investment fraud highlight the complexities of international jurisdiction in cases involving digital assets. As the situation develops, continued scrutiny of how laws in different regions influence these claims will be essential for affected victims seeking reparation.
This information was notably reported by TheStreet on October 22, 2026, under their MARKETS section. For further insights, please visit TheStreet’s official page.
