Compiled by Tim, PANews
PANews Editor's Note: This article focuses on the handling of funds involved in the Blue Sky Green illegal fundraising case. It is reported that Qian Zhimin, through Blue Sky Green, raised over 40.2 billion yuan in 31 provinces and municipalities across China. The Tianjin Public Security Bureau's Hedong Branch formally opened an investigation on April 21, 2017. However, by then, Qian Zhimin had foreseen the risks and fled to the UK. In late April 2024, British police arrested Qian Zhimin on charges of money laundering.
Article Summary
- Qian Zhimin defrauded more than 128,000 people through fake investment scams, stealing $6.8 billion in funds and converting them into Bitcoin.
- The British government seized the funds between 2018 and 2021, when they entered the UK, and is currently discussing its disposal options.
- Prosecutors are considering establishing a victim compensation scheme, but one expert warns the UK government may still keep the confiscated Bitcoin.
- Prosecutors plan to return funds to Chinese victims of a nearly $7 billion bitcoin scam, even though the British government has previously said it intends to keep most of the money.
In September 2024, Chinese citizen Qian Zhimin pleaded guilty to obtaining and possessing $6.8 billion worth of Bitcoin and other criminal proceeds. Between 2014 and 2017, Qian Zhimin illegally obtained these funds from over 128,000 investors in China through an investment scam. Over several years, she converted the stolen funds into Bitcoin and attempted to launder them. After Qian Zhimin fled to the UK using false documents, the London Metropolitan Police seized the stolen Bitcoin between 2018 and 2021.
Over the past few weeks, questions have been swirling about how the UK government plans to dispose of its nearly $7 billion in Bitcoin reserves. Germany, for example, sold billions of dollars worth of Bitcoin last year, having seized the cryptocurrency in various criminal cases. Meanwhile, according to Arkham Intelligence, the US government currently holds $37 billion worth of seized assets, which lawmakers are attempting to use to build a strategic reserve of crypto assets.
According to Bloomberg, prosecutors, who initially said they planned to retain most of the Bitcoin in the case, announced plans to develop a victim compensation plan at a court hearing today. Several investors have reportedly filed applications to recover their funds.
William Glover, a lawyer hired by the investor group, told Bloomberg at the hearing that some investors "suffered tremendous personal losses, including lives, marriages, families and careers."
Prosecutors have not yet provided specific details of the compensation package. Jackson Ng, a lawyer representing a group of investors, told Bloomberg: "Given the unprecedented scale of the seized assets and the public debate over potential profits, our position is clear: compensation for the victims must be our top priority."
However, Nick Harris, CEO of UK cryptocurrency asset recovery firm CryptoCare, warned that victims may be disappointed with the end result.
“Under the Proceeds of Crime Act, the UK may still retain confiscated Bitcoin rather than redistribute it directly,” Harris told Decrypt.
"Typically, confiscated assets flow into state coffers or law enforcement budgets through asset recovery reward schemes, a system also emulated by the US and Australia, which don't always prioritise victim compensation," he said.
