Qian Zhiming Case in UK Procedural Hearing: 16,000 Chinese Victims Register Civil Recovery Claims; Progress in the Disposal of 60,000 Bitcoins

British High Court holds a procedural hearing on June 5 regarding the Qian Zhimin Bitcoin money-laundering case. Around 16,000 Chinese victims have completed registration before the May 22 deadline to participate in the civil recovery proceedings under the UK’s Proceeds of Crime Act. Compared with the full case involving 128,000 victims, however, fewer than 13% successfully entered the UK proceedings. The court will subsequently make a key ruling on whether the approximately 60,000 bitcoins seized should be governed by UK law or Chinese law.
(Background: In the largest Bitcoin money-laundering case in UK history, Qian Zhimin’s case involving 60,000 bitcoins begins trial on 9/29, defrauding 130,000 Chinese people of 43 billion yuan)
(Additional background: Chinese-couple money-laundering case—UK seeks confiscation of “61,000 bitcoins” proceeds; China protests: China has the right to pursue recovery and will not sit idly by)

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• Registration deadline: 16,000 people only account for 13% of total victims
• How should the 60,000 bitcoins be handled? Whether UK law or Chinese law applies is crucial
• Taiwan perspective: The cross-border recovery challenges of overseas crypto-asset scams

On June 5 local time, the British High Court held a procedural hearing (procedural hearing) regarding the disposal of assets related to the Qian Zhimin Bitcoin money-laundering case. At present, about 16,000 Chinese victims have already completed registration through multiple UK law firms to take part in the civil recovery process under the UK’s Proceeds of Crime Act (Proceeds of Crime Act, POCA), paving the way for the subsequent allocation of assets of roughly 60,000 bitcoins (worth about 3 billion pounds sterling).

Registration deadline: 16,000 people only account for 13% of total victims

The registration window for the relevant civil recovery has officially closed on May 22. These roughly 16,000 registrants broadly constitute the current pool of victims who can enter the UK civil recovery process. However, compared with the total number of victims—up to 128,000—in the Lantian Gerui case, fewer than 13% have successfully entered the UK process. Not only is the number vastly different, but because some victims may have registered with multiple law firms, further de-duplication and verification will still be required going forward.

This case has been described by British media as “the largest-scale cryptocurrency money-laundering case in the history of UK justice.” The key figures in the case, Qian Zhimin (Qian Zhimin), together with companies such as Lantian Gerui (Lantian Gerui), lured about 130,000 Chinese investors with promises of high-return investments, illegally raised more than 43 billion yuan, and then converted the illicit funds into bitcoins to launder them overseas.

How should the 60,000 bitcoins be handled? Whether UK law or Chinese law applies is crucial

The core dispute in this hearing is whether, for the batch of roughly 60,000 bitcoins that have been seized, UK law or Chinese law should be used to determine ownership of the assets. The UK court has previously appointed litigation receivers to take over Lantian Gerui, but it stressed that this is a procedural measure and does not confer any substantive rights over the crypto assets.

If the court ultimately rules that UK law applies, the victims’ civil recovery route will be clearer; if Chinese law applies, it may involve the Chinese government’s claims to pursue the recovery of overseas proceeds. China’s Ministry of Foreign Affairs has previously stated that “China has the right to pursue recovery and will not sit idly by,” meaning this case is not only a dispute over compensation for cross-border fraud victims, but also carries a geopolitical color tied to the competition for judicial jurisdiction between the UK and China.

The cross-border recovery challenges of overseas crypto-asset scams

For Taiwan, this case carries a high level of warning significance. In recent years, Taiwan has also repeatedly seen crypto-related capital-raising fraud cases—ranging from “Bitcoin gangs” to various DeFi fund schemes. Victims often face a double dilemma: the perpetrators are overseas, while assets are concealed in the form of cryptocurrencies. In the Qian Zhimin case, the willingness of the UK court to accept civil recovery claims brought by Chinese victims provides a rare international judicial precedent for compensation mechanisms in cross-border crypto-asset scams.

However, the reality that only 16,000 people—just 13% of total victims—are involved also exposes how high the threshold is for cross-national judicial relief. Language barriers, legal costs, and information asymmetry may result in most victims being excluded from the recovery process. Further hearings will be held by the court in July on the question of applicable law, and Yangdong will continue to track developments.