Chinese authorities are moving to seize around $5 billion worth of Bitcoin, together with significant holdings in XRP and Dogecoin, in a case tied to one of the largest ever cryptocurrency frauds.
Tianjin court targets crypto assets in landmark fraud case
The Tianjin No. 2 Intermediate People’s Court recently accepted a confiscation request connected to Qian Zhimin, a convicted money launderer accused of orchestrating a massive investment fraud using Tianjin Lantian Gerui Electronic Technology.
The court confirmed it formally accepted the application on September 28. Prosecutors are pursuing 61,896.41552945 BTC, which is valued at approximately $5 billion at current market prices, in addition to millions in XRP and other digital assets.
The application extends beyond cryptocurrencies and includes physical cash in US dollars, euros, and British pounds, as well as assets such as jewelry, domestic and foreign bank deposits, and various investment portfolios.
British authorities have already liquidated the Dogecoin holdings, converting them to cash and transferring the proceeds to an account accruing interest.
The confiscation process is based on allegations that Qian raised about 40.38 billion yuan, equivalent to nearly $6 billion, between April 2014 and August 2017 through fraudulent investment products. These products, marketed by her technology firm, promised investors unusually high returns.
Prosecutors reported that the investment scheme affected over 102,000 individuals, whose losses reached roughly 19.98 billion yuan due to the company’s illegal fundraising activities.
The funds were used to repay prior investors, finance yet more sham investment products, and acquire luxury goods, real estate, vehicles, and large quantities of Bitcoin.
Qian left China in 2017 and eventually arrived in the United Kingdom, where officials seized her digital assets.
In November 2025, a British court sentenced Qian to 11 years and eight months in prison on money laundering charges.
Legal battle over seized Bitcoin intensifies
As part of the legal aftermath, the fate of the seized Bitcoin remains uncertain. The UK’s High Court recently determined that Chinese law should govern claims to the cryptocurrency made by the fraud’s victims.
This legal decision carries significant weight for the victims, as it could determine whether they are eligible for compensation based on the value of their original losses or whether they might receive a share of Bitcoin’s considerable price gains over the intervening years.
The UK High Court ruled that claims from affected investors must be evaluated under Chinese law, which may impact the way any compensation is calculated.
Despite this step, the British court has not yet decided on the final ownership of the assets. Additional proceedings are scheduled to determine whether victims can prove legally enforceable rights to the cryptocurrency holdings.
Meanwhile, the Tianjin court opened a six-month window allowing Qian’s relatives and other stakeholders, including investors who were harmed by the fraud, to participate in the ongoing confiscation process.
Mini dictionary: Tianjin Lantian Gerui Electronic Technology, a Chinese technology company used as a vehicle by Qian Zhimin for orchestrating large-scale fraudulent investment activities between 2014 and 2017.
