UK seeks to repay victims of massive China bitcoin scam
Representations of cryptocurrency Bitcoin are seen in this illustration taken on Nov 25, 2024. (File photo: Reuters/Dado Ruvic)
LONDON: Britain has proposed compensating victims of a massive scam in China that resulted in what is believed to be the world's largest cryptocurrency seizure, lawyers told AFP on Thursday (Oct 16).
At a Wednesday hearing in London, authorities confirmed a "victim compensation scheme is under active consideration", said Jackson Ng, a lawyer at Duan & Duan, which represents several victims.
In-depth discussions with representatives of the victims on what such a scheme might look like are expected to continue in the coming months, he added.
More than 128,000 victims were defrauded through a scheme in China between 2014 and 2017, according to London's Met Police.
At the centre of the scheme, Chinese businesswoman Zhimin Qian, also known as Yadi Zhang, stored the illegally obtained funds in bitcoin assets before fleeing China with fake documents.
In 2018, she arrived in the UK, where she attempted to launder the proceeds by purchasing property.
Arrested last year, she pleaded guilty at London's Southwark Crown Court in September for playing a leading role in the fraudulent bitcoin scam, now worth about £4.9 billion (US$6.6 billion).
As part of the same seven-year investigation, her accomplice, Jian Wen, was jailed in 2024 for six years and eight months for her role in the criminal operation.
Another accomplice, Seng Hok Ling, a Malaysian national, also pleaded guilty to his involvement in September.
"Some have suffered huge personal loss in the form of lives, marriages, fracturing families and businesses," said William Glover, a lawyer at Fieldfisher, who represents a group of victims.
It remains unclear whether victims will be compensated based on the current value of the 61,000 seized bitcoins.
According to the Financial Times, this financial windfall has attracted the interest of the British Treasury, with some members wanting to include it in the next budget.
The United Kingdom's finance ministry did not immediately respond to an AFP request for comment.
