The UK authority seized $1.7 billion in Bitcoin from a fraud operated in China between 2014 and 2017.
This Tuesday, in a court hearing, it was learned that British police seized approximately $1.7 billion in Bitcoin. The money would have been stolen between 2014 and 2017 in a scandalous fraud in the People’s Republic of China.
The case can be said to become one of the largest seizures of cryptocurrency by law enforcement. The details of the case became known during the trial of Jian Wen, accused of laundering money in Bitcoin for her former boss. The latter would be an alleged fugitive from the Chinese authorities, who are looking for her for fraud.
In 2018, UK authorities seized 4 devices in which around 61,000 BTC were stored, Bloomberg reports. These would have been found in the residence shared by Wen and the now fugitive and main person responsible for the fraud, Yadi Zhang. In 2021, all BTC recovery by authorities was completed. The amount was equivalent to $1.7 billion dollars.
During Tuesday’s hearing, it was also learned that Zhang’s real name is Zhimin Qian. The latter allegedly stole $6.35 billion from its clients in China in a fraudulent scheme before arriving in London under a false identity. According to prosecutors, Qian fled the United Kingdom and his whereabouts are unknown.
How the Bitcoin Seized by the UK Government Was Laundered
The amount of Bitcoin seized by the British police was in the process of being laundered by Wen. Although she is not directly accused of the crime of fraud, she is charged with money laundering. It should be noted that Wen played the role of Qian’s “face” or figurehead.
As demonstrated by the prosecution, Wen converted part of the scammer’s bitcoins into money, jewelry and real estate. Gillian Jones KC, a prosecutor’s attorney, said that Wen tried to buy a home for $15.2 million in 2018 through the firm Mishcon de Reya. However, the deal failed since the origin of the BTC could not be proven.
By October of that same year, authorities froze Wen’s money stored in his client account at Mishcon. From there the pieces began to fit together.
Wen Found Not Guilty
Wen has pleaded not guilty to the charges against her and considers herself Qian’s “caregiver.” She adds that she did not act in bad faith, but was convinced that the scammer’s funds came from a legal business. Despite this, Jones believes that Wen was paid to keep Qian in the background.
Now that it is known that the British police seized a large amount of money in Bitcoin, the trial’s outcome is awaited.
Other Countries’ Similar Events
This confiscation in the United Kingdom joins other similar actions that governments around the world are taking. A situation that leads them to hold bitcoin, as the cryptocurrencies in their possession rise or fall in price.
It was recently learned that the police in Germany confiscated more than 50,000 bitcoins. This, during the investigation process of criminal activity linked to a website. Now, they do not know what fate will be given to the crypto assets that remain in their hands.
In this regard, the United States already has a strategy. They use the sale or auction of the seized bitcoins. As reported by CriptoNoticias, the Department of Justice is already preparing for the next sale of about 3,000 BTC. What is not very clear is the use made of the money obtained from these settlements.
Everything indicates that the confiscation of cryptocurrencies has become a trend that may continue to advance in the coming years.
By Leonardo Perez
