BitQueen cryptocurrency fraud sparks UK China battle for five billion pound bitcoin fortune

The UK finds itself at the centre of an international dispute after seizing bitcoin worth over £5 billion from Zhimin Qian, known as the BitQueen, in one of the largest asset seizures in British criminal history. Qian, originally from China, pleaded guilty at Southwark Crown Court to charges of possessing and transferring criminal property, after orchestrating a vast cryptocurrency Ponzi scheme that defrauded around 128,000 Chinese investors.

Qian fled to Britain in 2017 using a St Kitts and Nevis passport under the identity Yadi Zhang as Chinese authorities closed in on her Tianjin Lantian Gerui Electronic Technology Company, or Blue Sky. Promises of returns between 100 and 300 per cent lured victims, though many were left with a mere fraction of their capital when Qian disappeared. Detectives later uncovered her buying luxury accommodation in London and plotting outlandish schemes such as purchasing a set of crown jewels for a self-proclaimed micronation on the Danube.

The bitcoin fortune now sits in government-controlled accounts after being discovered during raids on properties linked to Qian and her associate Jian Wen, who laundered the criminal proceeds through multiple online wallets. Wen, who arrived in the UK as a former takeaway worker, was convicted of money laundering in March of the previous year and subsequently jailed for over six years after attempts to acquire high-value London real estate drew the attention of investigators.

A legal battle now plays out in the High Court over whether these digital assets should be handed to the UK Treasury or returned to China for the benefit of Qian’s victims. Chancellor Rachel Reeves has reportedly earmarked the seized cryptocurrency as a possible contributor to the public finances, while Beijing insists the money be used to compensate the defrauded Chinese citizens.

The case exemplifies the complexities authorities face with cross-border cybercrime and international asset recovery, as well as fluctuations in cryptocurrency value. At one point, the bitcoin trove was valued near £7 billion, but it has since stabilised just above £5 billion. A property freezing order remains in place until the civil proceedings conclude, restricting any dispersal of assets.

Scotland Yard’s investigation, conducted with support from Chinese law enforcement, has been praised for its scale and effectiveness, yet final resolution must await the outcome of ongoing litigation and any subsequent diplomatic negotiations. For the thousands of investors awaiting redress, hopes now rest on the courts delivering justice and ensuring these funds serve their intended compensatory purpose.