Chinese authorities are undertaking legal proceedings to confiscate approximately $5 billion in Bitcoin, alongside millions of units of XRP and Dogecoin, in one of the largest cryptocurrency fraud cases in history. The action targets crypto assets seized from Qian Zhimin, who has been convicted of money laundering.
Court Approves Asset Seizure Application
According to an October 14 report by The Paper, the Tianjin No. 2 Intermediate People’s Court accepted the seizure application on September 28, announcing its decision on October 13. Prosecutors demand the recovery of 61,896.41552945 BTC and various other cryptocurrencies, totaling nearly $5 billion based on current market values.
This legal filing extends beyond digital assets, encompassing cash reserves in US dollars, euros, and British pounds, alongside jewelry, bank deposits, and investment portfolios. Notably, British authorities had already liquidated Dogecoin holdings, which were placed into an interest-bearing account.
Chinese prosecutors seek the return of 61,896.41552945 BTC, along with various cryptocurrencies and other assets.
40.38 Billion Yuan Allegedly Raised Illegally
Tianjin Lantian Gerui Electronic Technology sits at the center of this investigation. Accused of illicitly amassing 40.38 billion yuan—equivalent to about $6 billion—between April 2014 and August 2017 through the sale of fraudulent high-yield investment products, this entity operates as the primary company involved in the fund-raising schemes.
Chinese prosecutors indicate that over 102,000 investors have been defrauded, resulting in total losses of approximately 19.98 billion yuan. Large portions of these funds were allegedly used to pay off earlier investors, sustain fraudulent investment projects, and purchase assets such as Bitcoin, real estate, vehicles, and jewelry.
The document details losses totaling approximately 19.98 billion yuan affecting more than 102,000 investors.
Ownership Dispute Continues in the UK
After leaving China in 2017, Qian relocated to the UK. British authorities later seized Qian’s crypto assets, with a UK court sentencing Qian to 11 years and 8 months in prison for money laundering in November 2025.
However, the ultimate ownership of the seized Bitcoin remains unresolved. The UK High Court ruled on October 12 that Chinese law should govern the claims made by victims regarding the confiscated crypto assets. This decision is pivotal, determining whether investors can claim only their initial losses or also benefit from Bitcoin’s value appreciation over the years.
The British ruling did not directly establish ownership rights. Future hearings will assess whether victims possess enforceable claims over these crypto assets. Concurrently, the Chinese court has allowed a six-month period for concerned parties, including Qian’s relatives and defrauded investors, to participate in the proceedings.
