Chinese fraud victims are seeking the return of over £3 billion worth of bitcoin seized by UK authorities during a money laundering investigation involving Jian Wen, a Chinese restaurant worker. The victims, numbering over 128,000, fell prey to a £5 billion scam orchestrated by Tianjin Lantian Gerui Electronic Technology between 2014 and 2017. The saga involves a convoluted web of deceit, investigations, and legal proceedings spanning multiple countries.
The Scam Unveiled
Tianjin Lantian Gerui Electronic Technology, a Chinese company, reportedly perpetrated a massive investment fraud scheme, duping thousands of investors. The scam, amounting to over $6 billion, left a trail of financial ruin for its victims.
UK authorities stumbled upon the scam when former restaurant employee Jian Wen attempted to purchase a $30 million property using bitcoin. The purchase failed, triggering an investigation that led to a raid in 2018. During the raid, law enforcement confiscated a staggering 61,000 bitcoin, valued at £3 billion at the time, from Wen and her employer, Zhimin Qian, suspected mastermind of the scheme.
Jian Wen: Legal Proceedings
Jian Wen faced charges of aiding Qian in laundering the bitcoin into cash, jewelry, and real estate. Despite her denials, Wen was found guilty on multiple counts of money laundering by Southwark Crown Court.
In the wake of the convictions, Chinese fraud victims are clamoring for justice. They have petitioned China’s Ministry of Foreign Affairs and Ministry of Public Security to engage in discussions with UK authorities to reclaim their lost funds. With over 2,500 signatures supporting their cause, the victims are determined to recover what rightfully belongs to them.
The Battle for Bitcoin
The victims’ plea underscores their refusal to accept a scenario where the seized bitcoin remain in UK custody. They are urging Chinese authorities to collaborate with UK judicial departments to prove their rightful ownership of the digital asset. The victims asserted:
“There is no time to lose. We do not want, and will never accept, a situation where Bitcoins are confiscated by the UK and not returned to us,”
A child of one of the victims, preferring anonymity, made the statement, “Our voices should be heard and this property should not be confiscated by the UK.”
As the legal battle unfolds, uncertainties loom over the fate of the seized bitcoin. While UK authorities have initiated civil proceedings to confiscate the bitcoin in question, the victims remain hopeful for a favorable resolution. However, the process could result in a split of the seized assets between law enforcement and the Home Office, leaving the victims with a fraction of their losses.
Relief Amidst Turmoil
Despite the financial devastation wrought by the scam, some victims have found solace in partial compensations. A task force led by Chinese authorities has reimbursed victims with 8% and 5% of their investment capital, totaling $309 million, from seized assets of the fraudulent entity. However, the amount falls short of the billions lost by investors or the value of recovered bitcoin.
Conclusion
The plight of Chinese fraud victims seeking the return of £3 billion in seized bitcoin epitomizes a global struggle for justice in the face of financial fraud. As legal proceedings unfold, the victims’ unwavering resolve serves as a testament to their quest for restitution. The outcome of this battle will not only shape the fate of the seized assets but also determine the future of international cooperation in combating financial crimes.
