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China, UK police join forces to recover funds from massive crypto fraud

UK police in 2018 seized digital wallets holding more than 61,000 bitcoins, now worth more than US$6.7 billion

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British police in 2018 seized digital wallets holding more than 61,000 bitcoins as part of an investigation. Photo: Shutterstock
Xinmei Shen
Chinese police are working with UK law enforcement authorities to track down fugitives and illicit funds involved in a massive cryptocurrency fraud and money laundering case, but experts see little likelihood for victims to recoup their losses.
According to a statement, police in the northern city of Tianjin were “doing everything possible” to help more than 128,000 Chinese investors recoup funds caught in a web of fraudulent wealth schemes perpetrated between 2014 and 2017 by a syndicate, which converted cash into bitcoins and property to hide the scam’s proceeds.
Businesswoman Qian Zhimin, alias Zhang Yadi, in September pleaded guilty at London’s Southwark Crown Court, following what is believed to be the single largest cryptocurrency seizure in the world, now worth more than US$6.7 billion.
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Qian, 47, had converted the scammed funds into bitcoin and entered the UK, where she attempted to further launder funds. As part of their investigation, British police in 2018 seized digital wallets holding more than 61,000 bitcoins.

A government task force in Tianjin on Thursday called for victims to submit and confirm their information on an online platform, and urged them to wait patiently for the return of funds.

Funds of more than 128,000 Chinese investors were caught in a web of fraudulent wealth schemes perpetrated by a syndicate between 2014 and 2017. Photo: Shutterstock
Funds of more than 128,000 Chinese investors were caught in a web of fraudulent wealth schemes perpetrated by a syndicate between 2014 and 2017. Photo: Shutterstock

The case underscored the “grave importance of international law enforcement and judicial cooperation in combating transnational crimes in the digital era, especially in light of the borderless nature of cryptocurrencies”, said Andrew Fei, partner at law firm King & Wood Mallesons in Hong Kong.

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