A British High Court judge has ruled that Chinese law, rather than English law, will govern the distribution of a £3.8 billion bitcoin seizure linked to a large-scale fraud committed against thousands of victims in China. The decision marks a significant development in ongoing legal proceedings concerning the ownership and compensation of cryptocurrency recovered by UK authorities.
The case involves 61,000 bitcoin confiscated by London’s Metropolitan Police during an investigation into Zhimin Qian, a Chinese national convicted last year for orchestrating a fraud spanning 2014 to 2017. Qian, known in some reports as the "BitQueen," defrauded approximately 128,000 investors through fraudulent investment schemes, including one called Britain Nice Life Insurance Company. She fled China in 2017 after police raids on her operations and was arrested in York in 2024. Qian received an 11-year prison sentence at Southwark Crown Court in November 2025.
The bitcoin, acquired with the proceeds of Qian’s fraud, has significantly increased in value since its seizure and is now estimated at roughly £3.8 billion. Victims of the fraud have sought legal recognition in English courts, arguing they should be compensated based on English property law, which could entitle them to a share of the bitcoin itself rather than just the initial investments plus interest. They contend that because the assets are held within the UK, English law should apply.
However, Mr Justice Mark Turner sided with the Crown Prosecution Service, ruling that Chinese law should determine the validity of the victims’ claims. The judge emphasized that the fraudulent acts, including the inducement of contractual relationships and financial loss, occurred in China, where the victims parted with their money and suffered economic harm. Turner noted that while the ruling is preliminary and does not decide ultimate ownership, it limits the opportunities for the victims to claim the bitcoin under English law.
Under the UK’s Proceeds of Crime Act, victims must demonstrate legal ownership or rights to the property to prevent the Treasury from retaining seized criminal assets. Since English law would allow victims to claim the bitcoin more directly, the application of Chinese law raises the bar for their claims. The court will hear further expert evidence on the specifics of Chinese law to determine whether the victims’ rights meet the legal threshold in the UK.
Prosecutors have indicated that victims may receive compensation through a redress scheme administered from China. Meanwhile, representatives for the claimants, including the law firm Fieldfisher, announced plans to appeal the ruling.
One victim expressed frustration over the situation, stating, “It’s infuriating: they’ve made a fortune with this money, yet they only offer us meagre interest. Who wouldn’t be furious?”
The case continues to attract attention as it touches on complex questions of jurisdiction, international law, and the recovery of assets in the rapidly evolving cryptocurrency landscape. A further hearing is scheduled to address the application of Chinese law and assess whether the victims can establish a legal interest in the bitcoin.