A notorious fraudster, known as the BitQueen, has confessed to laundering over £5 billion in cryptocurrency, leading to significant implications for the UK’s budgetary needs. Zhimin Qian, who fled to the UK after allegedly defrauding around 128,000 investors in China, pleaded guilty at Southwark Crown Court to possessing and transferring criminal property.
This case marks what is believed to be one of the largest confiscations of criminal assets in British history. The seized cryptocurrency is now a focal point of intensifying diplomatic discussions between London and Beijing regarding the rightful ownership of these funds. Reports suggest that Rachel Reeves, the Chancellor, has earmarked these assets to help bolster the nation’s finances. Meanwhile, the Chinese government asserts its claim over the funds, maintaining that they were obtained through a Ponzi scheme that primarily victimized Chinese nationals.
After being confiscated from online wallets associated with Jian Wen, a former takeaway worker who helped launder proceeds from the fraud, the assets are reportedly in government accounts. The value of the seized bitcoin has skyrocketed 20-fold since its seizure in 2018, fluctuating from an estimated £7 billion to just over £5 billion as of the latest assessments.
In court, Qian, 47, admitted to controlling bitcoin while being fully aware of its illicit origins prior to April last year. She made her appearance wearing a beige cardigan and an animal-print blouse, amid intense legal discussions leading up to her guilty plea. Qian entered the UK in September 2017 under an identity provided by St. Kitts and Nevis, using one of several aliases, including Yadi Zhang, Rose, Emma, and Hua Hua, and absconded shortly before she was slated for police questioning in September 2020.
Her elaborate investment scheme, operated through the Tianjin Lantian Gerui Electronic Technology Company, promised exorbitant returns between 100% and 300%. However, investors reportedly received minimal returns, with some left with as little as 5% of their initial investments.
Before her investigation began, Qian lived lavishly in a £17,300-per-month residence in Hampstead, north London, and traveled extensively for nearly two years while concealing her wealth. Police raids on her property uncovered plans to invest in a self-declared sovereign state known as Liberland, where she aspired to become “queen” and obtain a diplomatic passport to evade prosecution. Subsequent searches revealed devices containing further cryptocurrency, and she vanished shortly after planning a police interview.
Wen, who was instrumental in laundering the cryptocurrency, was arrested after attempting to purchase high-value properties in London and was handed an 80-month prison sentence for her actions. Ongoing High Court litigation regarding the ownership of the seized bitcoin remains unresolved. The UK authorities argue that the assets, being the proceeds of fraud, should be directed to the Treasury, while the Chinese government, appointing legal representatives for the victims, contends otherwise.
The Crown Prosecution Service issued a notice to victims of the Lantian Gerui fraud, acknowledging the existence of more than 128,000 individuals claiming losses, many of whom have already sought partial compensation in China. Judge Sally-Ann Hales has postponed sentencing for Qian until the conclusion of a related trial involving another alleged accomplice.
Scotland Yard’s Will Lyne remarked upon the unprecedented scale of this money laundering case, citing extensive cross-border cooperation that helped yield compelling evidence of the criminal origins of the crypto assets. Following her guilty plea, Qian’s solicitor stated that this development may offer some hope of compensation for investors who have awaited restitution since 2017, while highlighting the potential for sufficient funds to address their losses given the rapid increase in cryptocurrency values.
