Landmark Bitcoin Trial: China-UK Clash Over $6.7B Crypto Recovery

The landmark 60,000 Bitcoin money laundering trial of Qian Zhimin, a central figure in a $4.3 billion Ponzi scheme targeting 130,000 Chinese investors, commenced on September 29, 2025, at London’s Southwark Crown Court. The trial, expected to last 12 weeks, marks the first major cross-border asset recovery case involving cryptocurrency between China and the UK. Qian, also known as Yadi Zhang or “Huahua,” faces two counts of money laundering related to her alleged conversion of illicit proceeds into Bitcoin and subsequent transfer to the UK prior to China’s 2017 crypto ban. The seized 61,000 Bitcoins, valued at approximately $6.7 billion at the time of confiscation, represent a significant portion of the 43 billion RMB ($6.67 billion) defrauded from investors between 2014 and 2017 Qian Zhimin defrauded 130,000 Chinese investors of 43 billion …^[1].

Qian’s scheme, operated under her Tianjin Blue Sky Ge Rui Electronic Technology Co., Ltd., exploited high-yield investment products promising returns of 100% to 300%. The fraud collapsed in 2017 following China’s regulatory crackdown on initial coin offerings (ICOs). Qian fled to the UK using a St. Kitts and Nevis passport, converting illicit funds into Bitcoin before British authorities seized the cryptocurrency through investigations into her associate Jian Wen, who was later convicted of money laundering Multi-billion Bitcoin Case - thornhill-legal.com^[2]. Qian’s defense team, led by specialist crypto attorney Roger Sahota, denies the charges, asserting the Bitcoin holdings were legally acquired investments rather than proceeds of crime. The UK Crown Prosecution Service (CPS) has limited its charges to asset-related offenses, citing jurisdictional challenges in prosecuting a fraud primarily executed in China London trial of 60,000 Bitcoin money laundering case to begin …^[3].

The case has exposed significant hurdles for victims seeking cross-border recovery. Under the UK Proceeds of Crime Act 2002 (POCA), Chinese investors must prove ownership of the seized Bitcoin and navigate complex on-chain tracing procedures. The decentralized nature of cryptocurrency complicates asset identification, while limited judicial cooperation between China and the UK—reliant on a 2013 mutual legal assistance treaty—delays resolution. By January 2025, 4,500 of the seized Bitcoins had vanished, highlighting vulnerabilities in digital asset tracking. The CPS has initiated civil recovery proceedings, with half of unclaimed assets earmarked for law enforcement funding and the remainder for the police How billions in Bitcoin laundered from China ended …^[4].

The trial’s outcome carries broader implications for global crypto regulation. UK courts will test how large-scale on-chain evidence is handled in criminal proceedings, while the case may influence future anti-money laundering frameworks. Legal experts note the tension between China’s preference for state-led asset repatriation and the UK’s reliance on judicial processes. The absence of an extradition treaty between the two nations further complicates Qian’s potential prosecution for the original fraud, which remains under investigation in China. Jian Wen’s 2025 confiscation order, requiring her to pay £3 million in proceeds, underscores the UK’s focus on asset recovery over extradition The Case Within the 60,000 Bitcoin Incident | Special Feature …^[5].

As the trial progresses, stakeholders await clarity on whether victims can reclaim losses through international cooperation. The case has already spurred discussions on improving cross-border legal frameworks, with the CPS emphasizing its commitment to facilitating victim claims. However, the complexities of proving ownership in a pseudonymous, decentralized system remain a barrier. The Qian Zhimin case, now a focal point for regulators and the legal community, could set precedents for handling cryptocurrency-related crimes in an era of evolving digital asset governance Crypto Regulations In China 2025 - Coinpedia^[6].