The Financial Times reports that the UK government has seized 61,000 BTC, worth around £1.4 billion (equivalent to $1.78 billion USD), in connection with an investment fraud scheme originating from China.
The mastermind behind this elaborate scam, Zhimin Qian, converted a portion of the profits from the £5 billion investment fraud operation in China, which ran from 2014 to 2017, into leading cryptocurrencies to facilitate cross-border fund transfers. Qian, currently identified as Yadi Zhang with a St. Kitts and Nevis passport, relocated to the UK in 2017. However, prosecutors reveal that Zhang has since evaded authorities and remains at large.
Authorities uncovered the fraudulent activities when Zhang, aided by Jian Wen in money laundering, drew attention while attempting to purchase a £23.5 million mansion in London. This triggered a police raid on their rented apartment, worth £17,000 per month, leading to the seizure of numerous digital wallets containing 61,000 BTC.
Although not directly involved in the fraud scheme, Wen faces money laundering charges. Prosecutors allege that Wen assisted Zhang in converting digital assets into cash, jewelry, luxury items, and other assets, knowingly participating in the illicit transfer of funds.
Notably, their attempts to acquire real estate, including an 8-bedroom house worth £12.5 million with BTC, failed due to their inability to explain the source of the funds. Wen has not pleaded guilty and claims to have merely provided assistance to Zhang.
In a global context, the recent actions by the US and Germany are noteworthy. German authorities announced the seizure of an unprecedented $2.3 billion USD worth of illegal cryptocurrencies linked to a copyright-infringing website on January 30th.