Chinese Scammer Convicted in U.K. After World’s Largest $7B Crypto Seizure
Published
- Guilty plea: Chinese national Zhimin Qian pleaded guilty to charges related to possessing criminal property.
- Record seizure: The case involves what is believed to be the world's largest single crypto seizure, valued at nearly $7 billion.
- International fraud: The funds originated from a large-scale investment fraud in China between 2014 and 2017 that defrauded over 128,000 victims.
Chinese national Zhimin Qian has pleaded guilty at Southwark Crown Court to offenses under the U.K.'s Proceeds of Crime Act. The Zhimin Qian conviction is the culmination of a seven-year Met Police investigation into a sophisticated international money laundering operation.
Details of the Investigation and Seizure
The Metropolitan Police's Economic Crime team launched its inquiry in 2018 following intelligence regarding the transfer of criminal assets. This led to a raid that uncovered digital wallets containing 61,000 Bitcoin, currently valued at nearly $7 billion (£5.5 billion), marking it possibly the largest cryptocurrency seizure ever recorded globally.
The investigation, which involved extensive cooperation with Chinese law enforcement in Tianjin and Beijing, successfully traced the criminal origins of the assets.
Zhimin Qian, 47, of no fixed address, pleaded guilty on Monday, 29 September, to the following offenses under the Proceeds of Crime Act (2002):
- Acquired criminal property, namely cryptocurrency
- Possessed criminal property, namely cryptocurrency
Qian, also known as Yadi Zhang, orchestrated a large-scale investment scam in China, defrauding more than 128,000 victims of billions of dollars between 2014 and 2017, before converting the illicit funds into Bitcoin and fleeing to the U.K. in 2018 using false documents.
Qian's co-conspirator, Jian Wen, was previously convicted for her role in attempting to launder the proceeds by purchasing high-value property in the U.K. and was sentenced to over six years in prison.
Implications for Cryptocurrency Fraud Enforcement
This case highlights the growing use of digital assets by organized crime to conceal and transfer the proceeds of fraud. The successful prosecution highlights the growing capability of international law enforcement agencies to trace and seize digital assets, despite their perceived anonymity.
“This is one of the largest money laundering cases in UK history and among the highest-value cryptocurrency cases globally,” said Will Lyne, The Met’s Head of Economic and Cybercrime Command, in the Met Police press release.
"By pleading guilty today, Ms Zhang hopes to bring some comfort to investors who have waited since 2017 for compensation, and to reassure them that the significant rise in cryptocurrency values means there are more than sufficient funds available to repay their losses," said Zhang's solicitor, Roger Sahota of Berkeley Square Solicitors, according to Sky News.
The Crown Prosecution Service (CPS) will now undertake proceedings to ensure the confiscated assets remain beyond the reach of the criminals involved, setting a significant precedent for future cases of this nature.
In August, the U.S. Department of Justice seized $2.8 million in cryptocurrency linked to Zeppelin Ransomware, while an individual suspected of scamming people through fake online investment schemes was arrested this year.
Related
Get expert insights on threats, breaches, scams, and security trends — delivered every Saturday.
Most Popular
Get expert insights on threats, breaches, scams, and security trends — delivered every Saturday.
Most Popular