Victims of a massive Chinese investment fraud are challenging a United Kingdom proposal to compensate them through a Chinese redress scheme, arguing the plan could leave British authorities holding much of the upside from roughly 61,000 Bitcoin (BTC) seized in a money-laundering investigation. According to the Financial Times, the dispute has moved into the UK High Court as groups representing victims seek to recover the cryptocurrency, now worth about £3.2 billion ($4.3 billion).
The case stems from a fraud scheme that ran between 2014 and 2017, affecting more than 128,000 investors in China. Proceeds were converted into Bitcoin and moved abroad. British authorities seized the BTC in a 2018 raid on a London property linked to Jian Wen, later convicted of money laundering, and Zhimin Qian, the scheme's mastermind sentenced to over 11 years in prison in November 2025.
Law firm Candey, representing about 5,700 victims, argues the proposed compensation arrangement may not guarantee fair restitution. Prosecutors have countered that some legal claims could allow a subset of victims and litigation funders to recover sums exceeding their actual losses. Martin Evans KC, representing the Director of Public Prosecutions, stated the claims risk benefiting “a small subset of victims and their litigation funders” while excluding others.
A preliminary hearing is scheduled for July to determine whether English or Chinese law should govern the claims. The High Court has also set a May 22 deadline for claimants seeking recovery under Section 281. This case highlights growing legal complexities around crypto seizures, where digital assets can appreciate significantly between confiscation and restitution.
