Desk Report:
Chinese national Zhimin Qian, also known as Yidi Zhang, has pleaded guilty to the world’s largest cryptocurrency fraud. He pleaded guilty at Southwark Crown Court in London on Monday.
London’s Metropolitan Police said Qian ran a massive fraud ring in China between 2014 and 2017, defrauding more than 128,000 people of their money. He then converted the money into bitcoin and deposited it.
A total of 61,000 bitcoins (worth around £5 billion or $6.7 billion) were seized in the case. It is the largest cryptocurrency fraud case in the UK to date.
The Metropolitan Police said the investigation into the transfer of criminal assets began in 2018 after receiving a tip-off from a tip-off. The investigation was conducted over seven years with the help of various domestic and international agencies.
Qian, 47, fled China using false documents to enter the UK. He tried to launder money by buying property there with the stolen money.
Qian was assisted by Chinese restaurant worker Jian Wen. He was sentenced to six years and eight months in prison in 2024.
The Crown Prosecution Service (CPS) said Wen laundered the fraudulent funds to buy a multi-million pound house in north London and two properties in Dubai worth more than £500,000.
Wen claimed he bought the property on behalf of a Chinese employer. However, the CPS said the money came from illegal sources as there was no legitimate explanation for the large amount of bitcoin he had.
The Met said more than £300m worth of bitcoin was seized from Wen.
In a report, China’s Lifeweek media reported that most of the victims were aged between 50 and 75 and had invested “several hundred thousand to several hundred million yuan” in investment schemes promoted by Qian. Qian lured them with ‘daily’ and ‘guaranteed’ profits.
At the time of the fraud, Qian’s company claimed to help China become an international financial and technology hub and was investing in various projects across the country.
Many people were connected to Qian’s investment scheme through friends and relatives.
According to Lifeweek, many of the investors knew very little about Qian. She was considered the ‘goddess of wealth’.
Crown prosecutor Robin Weill said: ‘Bitcoin and other cryptocurrencies have now become the main means of hiding and transferring money for organised criminals. As a result, they can reap the benefits of their criminal activities.’
Will Line, head of the Metropolitan Police’s Economic and Cyber Crime Command, said: ‘This is the result of a series of investigations over the years. This success has come with the help of law enforcement agencies in various countries, including China.’
Police said the investigation is still ongoing. And they are working to ensure that the seized money cannot be used again by the perpetrators.
The CPS said that many victims have been given some of their money back through a compensation scheme in China. Qian is currently being held in custody and his sentencing date has not yet been set.
Source: BBC
