China to confiscate $5 billion in Bitcoin seized from UK fraud suspect

Chinese authorities have started legal proceedings to confiscate nearly 62,000 bitcoins, valued at approximately $5 billion, from an individual accused of masterminding one of China’s largest financial frauds. Prosecutors have named Qian Zhimin, controller of the technology firm Tianjin Lantian Gerui Electronic Technology, as the main suspect behind the scheme. From 2014 to 2017, Qian and associates reportedly sold fraudulent wealth management products to investors nationwide, promising guaranteed returns with no regulatory approval. Authorities report the operation raised roughly 40.3 billion yuan, or $2.8 billion, during this period. Rather than pursuing legitimate business activity, Qian allegedly used investor funds to pay off earlier participants in a Ponzi-like system. Much of the money was converted into bitcoin holdings, real estate, cars, and jewelry.

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