China moves to confiscate 61,800 BTC from the $5.7 billion Qian Zhimin fraud

22 Oct 2026

22 Oct 2026, 09:03 UTC+02:00

Chinese prosecutors are seeking to confiscate more than 61,800 bitcoin linked to one of the country’s largest alleged crypto-related frauds. According to CoinDesk, citing reporting by Chinese outlet The Paper, the case involves more than 40 billion yuan, roughly $5.7 billion, raised from investors across China.

The bitcoin itself is not in China. It was seized by British authorities, which makes this case a test of how cross-border crypto confiscations and victim claims are handled.

What prosecutors allege

The case centres on Qian Zhimin, described as the alleged controller of Tianjin Lantian Gree Electronic Technology. Prosecutors say that between 2014 and 2017 the company sold unlicensed wealth-management products across China, promising guaranteed principal and high returns.

• The scheme allegedly raised more than 40.378 billion yuan from more than 102,000 investors.
• Investors lost nearly 20 billion yuan, according to prosecutors.
• Instead of funding real businesses, the money was allegedly used to repay earlier investors, run fake investment projects, buy bitcoin and acquire property, cars and jewelry.

Qian fled China in 2017 and later settled in the UK. British authorities eventually seized the assets, including more than 61,800 BTC, plus bitcoin cash, bitcoin gold, bitcoin SV, XRP, dogecoin, cash, jewelry and investment holdings.

The court process in China

On October 13, the Second Intermediate People’s Court in Tianjin said it had accepted the prosecutors’ request to confiscate the assets as illegal gains. The court has opened a six-month window for victims and other interested parties to join the case. Victims who do not take part can still seek refunds from any recovered assets.

The UK ruling

The Chinese move comes days after a UK High Court ruling that Chinese law, not English law, should govern alleged victims’ claims to the more than 61,000 BTC held in Britain. That does not rule out recovery. It means the court will assess whether victims have a property claim under Chinese law, with further hearings expected, and lawyers for some victims are seeking to appeal.

CoinDesk notes that the bitcoin stash could now be worth far more than when it was seized. At the roughly $84,500 bitcoin price CoinDesk reported on Thursday, 61,800 BTC would be worth around $5.2 billion.

What it means for traders

The main question for the market is what eventually happens to the coins. Large government-held bitcoin stashes can become a source of selling pressure if they are liquidated, but nothing in the current reporting says when, or whether, these coins will be sold. With a six-month claims window in China and more hearings and possible appeals in the UK, any movement looks unlikely in the near term.

Traders who follow on-chain alerts should treat any transfer from wallets tied to such seizures with care: a transfer is not the same as a sale. The case is also a reminder of why counterparty risk matters. Promises of guaranteed returns are a classic warning sign, and it pays to use regulated, transparent platforms. Our exchange comparison shows how major venues stack up, and our reviews of BingX, OKX and Kraken cover security and custody in detail. See how we test for our scoring method. This is not financial advice.

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Sources

• CoinDesk: China seeks to seize 61,800 BTC tied to $5.7 billion fraud scheme
• CoinDesk: Bitcoin ETFs attract $1.08 billion in 3 days but it may not be enough for a steep rally

News is for information only and is not financial advice. More crypto news