The UK government has strengthened its position in a legal battle over 61,000 Bitcoin seized from convicted fraudster Zhimin Qian after London’s High Court ruled that Chinese law should govern claims brought by victims of his scheme.
The Bitcoin was worth about $5 billion at a price of roughly $83,200, based on CoinGecko data cited in the case. Thousands of people have applied under the UK’s Proceeds of Crime Act seeking to have some of the cryptocurrency recognized as belonging to them.
The ruling does not decide whether the UK will ultimately keep the Bitcoin, nor does it determine whether any victims can establish a legal interest in the coins. Those questions will be addressed at a later stage. Lawyers representing the claimants are also preparing an appeal.
Why the legal ruling matters
Justice Mark Turner said Chinese law applied because the alleged fraud, the investment contracts and the victims’ payments all took place in China. The judge reached the same conclusion through each of the legal approaches considered in the case.
He wrote that the relevant loss occurred in China and that the applicants parted with their money there. Since the Bitcoin was purchased in China, tracing the assets to England does not, by itself, restore property rights that may have been lost under Chinese law at the time of purchase.
The distinction is important because English law had been viewed as more favorable to the victims. Under the claims process, however, each applicant must demonstrate a proprietary interest in the specific Bitcoin. The legislation does not create a general compensation program for people who lost money through crime.
According to Decrypt, the court’s decision therefore improves the UK’s prospects of retaining the seized cryptocurrency, although the final outcome remains unresolved.
The fraud case and the claims
Qian was sentenced to more than 11 years in prison after pleading guilty to fraud and money-laundering charges connected with a Ponzi scheme that defrauded investors in China between 2014 and 2017.
Court documents cited in the ruling said at least 128,409 investment contracts were entered into. Victims paid approximately RMB 40.2 billion, or about £4.1 billion, while around RMB 34.1 billion was later paid back to some investors.
The Director of Public Prosecutions, who leads the Crown Prosecution Service, brought the legal case concerning the claims. The CPS said a further hearing would examine the content and application of Chinese law and whether any victims can prove an interest in the Bitcoin.
Prosecutors have previously said victims could potentially be compensated through a redress scheme operated from China. Fieldfisher, the law firm representing claimants, is pursuing an appeal.
Unnamed Treasury officials have also privately discussed whether the cryptocurrency, valued at around $7 billion when Qian’s trial took place, could help address a shortfall in UK public finances, the Financial Times reported last year.
Current crypto market picture
Moneyiar market data at 20:44 on October 13, 2026, showed Bitcoin at $83,221.604056005, up 0.25% over 24 hours but down 2.81% over seven days. Sei was $0.0644109848, down 2.52% in 24 hours and 10.94% over seven days.
Nesa stood at $0.1366466688, down 2.74% over 24 hours and 3.3% over seven days. Movement was $0.0085942233, down 3.48% over 24 hours and 10.54% over seven days.
