Quick breakdown
- UK officials are considering whether to return only the original £640M value of a fraud case to victims, despite 61,000 BTC now being worth $7.24B.
- The seizure, tied to Chinese fraudster Zhimin Qian, is the largest cryptocurrency confiscation in history.
- Treasury debate continues, with warnings of possible lengthy legal battles if the government keeps the $6.4B windfall.
Government considers victim repayments at original value
United Kingdom officials are weighing whether to retain billions in gains from Bitcoin seized in connection with a massive fraud case, according to a report from the Financial Times. The High Court may decide to reimburse victims only at the original value of their investments, about £640 million ($862 million) instead of the current market value of the seized Bitcoin.
NEW: 🇬🇧 UK officials are considering keeping billions in profits from seized Bitcoin linked to the Zhimin Qian fraud case, instead of distributing the full current value to victims, per the Financial Times. pic.twitter.com/yCnjcICH2i
— Bitcoin News (@BitcoinNewsCom) October 2, 2025
The assets in question, 61,000 BTC, are now worth nearly $7.24 billion, creating an excess of more than $6.4 billion. Treasury officials have privately debated whether this windfall could help reduce the UK’s estimated £30 billion ($40.5 billion) budget deficit.
Largest cryptocurrency seizure in history
The Bitcoin was confiscated in 2018 from Chinese national Zhimin Qian and her Malaysian aide, Seng Hok Ling. The pair defrauded over 128,000 investors in China between 2014 and 2017, funnelling stolen assets into Bitcoin before fleeing to the UK.
Qian and Ling were arrested in April 2024 following a seven-year investigation by the Metropolitan Police’s Economic Crime team. Authorities seized encrypted devices, cash, gold, and cryptocurrency, marking what police describe as the single largest crypto seizure ever recorded.
Both individuals pleaded guilty this week—Qian to acquiring and possessing criminal property, and Ling to transferring criminal property.
Treasury faces legal and political hurdles
While some officials argue the seized Bitcoin could provide much-needed fiscal relief, others warn that withholding the appreciated value from victims could spark years of legal disputes. Current law under the Proceeds of Crime Act directs confiscated assets to the Home Office or the Treasury Consolidated Fund, with courts deciding on compensation where applicable.
The Treasury has reportedly been told not to count the funds in budget planning until the High Court makes a ruling.
Global trend of crypto seizures
The case comes amid a string of major cryptocurrency seizures worldwide. In September, Canadian police confiscated $40 million in crypto from the TradeOgre exchange, while US authorities have seized hundreds of millions of dollars in assets linked to ransomware and fraud cases.
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