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      UK Court Rules Chinese Law Governs Claims to Seized Bitcoin

      A High Court in the United Kingdom has ruled that claims to over 61,000 Bitcoin, valued at approximately $5 billion, will be governed by Chinese law rather than English law. This decision complicates the recovery process for around 16,000 victims of a fraud scheme orchestrated by Zhimin Qian, also known as Yadi Zhang or Qian Zhimin, who was convicted for his role in a Ponzi-style operation that ran from 2014 to 2017.

      The ruling, delivered by Mr Justice Mark Turner on or around October 12, 2026, falls under civil recovery proceedings initiated under the Proceeds of Crime Act 2002. The court's decision means that claimants must now demonstrate a proprietary interest in the Bitcoin according to Chinese legal standards, which is a more stringent requirement than simply proving a creditor claim. This shift raises the bar for victims seeking to reclaim their losses, as they must provide stronger evidence of ownership.

      The Bitcoin in question was acquired through a scheme that resulted in significant financial losses for victims, primarily Chinese investors, who signed over 128,000 investment contracts amounting to approximately RMB 40.2 billion, or around £4.1 billion. The funds were converted into Bitcoin via exchanges and over-the-counter trades in China. Following the scheme's collapse in 2017, Qian relocated to the UK, where he was later sentenced to 11 years and 8 months for money laundering in November 2025.

      This ruling not only impacts the current victims but also sets a precedent for future cases involving seized digital assets. The decision highlights the complexities of international law in cryptocurrency cases, particularly as the value of such assets can fluctuate significantly between the time of the crime and legal proceedings. Upcoming hearings will further explore the implications of Chinese property rights in this context, and victims may consider appeals as they navigate the new legal landscape.

      © 2026 KLEA News. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

      Source: KLEA News

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