Last updated on May 12th, 2026 at 08:17 pm
Victims of a large-scale Chinese investment fraud are pushing back against a United Kingdom proposal that would compensate them through a Chinese redress scheme, arguing the plan could unfairly benefit British authorities following the seizure of tens of thousands of Bitcoin.
The dispute, now before the UK High Court, centres on roughly 61,000 Bitcoin confiscated by British police during a money laundering investigation. The digital assets, once part of the proceeds from a major fraud scheme, have surged in value since their seizure and are now worth around £3.2 billion ($4.3 billion).
According to reports citing court filings, victim groups are seeking direct access to the recovered funds rather than relying on a compensation framework administered through Chinese authorities.
Chinese fraud victims are asking a UK court to block a plan for 61,000 seized bitcoin, saying it could stop them from benefiting if the value has gone up.
— Ox HaK (@oxhak) March 12, 2026
Victims question fairness of compensation plan
Law firm Candey, which represents approximately 5,700 victims, argues that the proposed arrangement may not ensure fair compensation for those affected. The original fraud scheme reportedly targeted more than 128,000 investors across China between 2014 and 2017.
Investigators say the perpetrators collected funds from victims before converting the proceeds into Bitcoin and transferring the assets overseas, complicating recovery efforts.
However, British prosecutors have raised concerns that some of the claims being pursued could allow certain investors and litigation funders to recover more than the value of their actual losses.
Martin Evans KC, representing the Director of Public Prosecutions, warned in court submissions that the legal strategy might disproportionately benefit “a small subset of victims and their litigation funders,” potentially sidelining other claimants and the UK government.
Candey defended its role in the case, stating that court proceedings offer the most transparent path to proper restitution. The firm also noted that its legal fees are capped at 18% of any recovered funds.
London Bitcoin seizure tied to fraud investigation
The legal dispute stems from a 2018 raid on a London property connected to Jian Wen, who was later convicted of money laundering. Authorities seized more than 61,000 Bitcoin during the operation.
The broader scheme was orchestrated by Zhimin Qian, identified as the mastermind behind the fraud. In November 2025, a UK court sentenced Qian to more than 11 years in prison. Authorities said the investigation into Zhimin led to officers recovering devices containing 61,000 Bitcoin, the largest cryptocurrency seizure in the UK.
Wen had previously drawn scrutiny after attempting to purchase a luxury mansion in London using Bitcoin, but was unable to provide a clear explanation for the origin of the funds.
A preliminary hearing is scheduled for July to determine whether English or Chinese law should govern claims to the seized Bitcoin. Meanwhile, the High Court has set May 22 as the deadline for victims seeking recovery under Section 281.
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