Zhimin Qian, a Chinese national, has been sentenced to 11 years and eight months in prison following her involvement in a massive pyramid scheme that defrauded over 120,000 pensioners in China. The scheme, run through her company Lantian Gerui, promised lucrative returns from high-tech health products and cryptocurrency mining operations. Qian, who had also used the alias Yadi Zhang, pleaded guilty to charges of fraud and money laundering last September.
Alongside her, Seng Hok Ling, her Malaysian associate, received a lesser sentence of four years and 11 months for acting as her financial conduit. Qian fled China in 2017 using a fraudulent passport and settled in the UK, where her luxurious lifestyle continued until her arrest in April 2024 in York. A police raid on her mansion in Hampstead Heath revealed a staggering 61,000 Bitcoin (BTC), valued at approximately $6.4 billion, marking it as the largest cryptocurrency seizure in British history.
Lantian Gerui’s operation flourished at its peak, attracting billions in deposits, primarily from elderly investors who were often lured to extravagant events across China. Prosecutors revealed that the returns paid to existing investors were generated from funds brought in by new participants rather than legitimate business activities. Qian allegedly employed a blend of patriotism and poetry to captivate her audience, notably featuring prominent speakers like the son-in-law of Chairman Mao at her company’s events.
After ceasing payouts in late 2017, Qian vanished, ultimately re-emerging in the UK. In London, she portrayed herself as a successful businesswoman and maintained a lavish lifestyle, contemplating ambitious yet extravagant pursuits such as acquiring a Swedish castle and befriending British nobility.
In the UK, her network also involved individuals like Jian Wen, who assisted in laundering millions through cryptocurrency exchanges. Wen was sentenced to six years for money laundering in the previous year.
Despite Qian’s sentencing, questions loom over the fate of the seized Bitcoin, which has become a point of contention between the UK government and Chinese authorities. Advocates for the victims argue that the cryptocurrency rightfully belongs to the defrauded investors. Treasury officials have suggested retaining the Bitcoin to bolster the UK’s public finances, leading to civil proceedings that will ultimately determine the distribution of the seized assets—a process that could take years.
Many victims note that they did not transfer funds directly to Lantian Gerui but rather to regional promoters, complicating their claims. Furthermore, since most investors paid in traditional currency rather than cryptocurrencies, there are lingering questions regarding ownership of the appreciated assets. Lawyers representing the victims assert that the UK state should not have the authority to dispose of the frozen Bitcoin without addressing the legitimate interests of the affected parties.
Conversely, some experts believe the UK government may be inclined to keep part or all of the assets. This approach aligns with the Asset Recovery Incentivisation Scheme, which allows for recovered funds to be funneled back into law enforcement and governmental budgets.
As discussions continue on how to navigate this unprecedented situation, industry experts suggest that maintaining a reserve of confiscated Bitcoin could enhance the UK’s standing in the global cryptocurrency landscape while also providing a potential avenue for victim compensation.
