INTEL: China seeks to confiscate $5 billion in Bitcoin held by the UK
Chinese authorities are seeking to confiscate approximately 61,896 Bitcoin linked to a multibillion-dollar investment fraud involving Qian Zhimin. The cryptocurrency is currently held by British authorities and is the subject of separate legal proceedings in China and the United Kingdom.
The Tianjin No. 2 Intermediate People’s Court accepted the confiscation application on September 28, 2026, and publicly announced the case on October 13.
The Bitcoin was valued at approximately $5 billion in reports published at the time, although its market value fluctuates.
China seeks ownership of 61,896 Bitcoin
Chinese prosecutors are seeking the confiscation of assets allegedly derived from an illegal fundraising operation that affected more than 100,000 investors between 2014 and 2017.
The requested assets include approximately 61,896 BTC alongside Bitcoin Cash, XRP, Dogecoin and other cryptocurrencies. Cash, jewelry, bank deposits and investments are also included in the proceedings.
Authorities allege that the operation raised more than 40 billion yuan from investors through fraudulent investment schemes.
The confiscation request excludes property that must legally be returned to victims.
Why is the Bitcoin held in the UK?
Qian Zhimin fled China in 2017 after authorities began investigating the fraud.
British police subsequently seized devices and cryptocurrency assets connected to Qian, including access to more than 61,000 Bitcoin.
The seized assets remain subject to legal proceedings in England. China’s acceptance of a confiscation application does not automatically transfer ownership or control of the cryptocurrency.
UK court ruling complicates victims’ claims
On October 12, the UK High Court ruled that Chinese law must govern the assessment of victims’ ownership claims over the seized Bitcoin.
The decision requires claimants to establish legally recognized ownership interests rather than relying solely on evidence that they lost money in the fraud.
However, the ruling did not determine who ultimately receives the cryptocurrency.
In a development reported October 21, approximately 16,000 Chinese victims received permission to appeal the decision.
Who will ultimately receive the Bitcoin?
The dispute involves competing legal proceedings and claims from fraud victims and government authorities.
Chinese prosecutors are pursuing confiscation through a court in Tianjin. British prosecutors are separately pursuing recovery of the assets under UK law.
Victims are also seeking recognition of their ownership rights.
The Chinese proceedings and the UK case remain legally distinct, and no final determination has established which party will ultimately control the Bitcoin.
The outcome could determine the distribution of one of the largest cryptocurrency seizures associated with an international fraud investigation.
