Who Will Get the $5 Billion in Bitcoin? UK Ruling Makes It Harder for Victims

The High Court of London has ruled that Chinese law should apply to victims’ ownership claims over 61,000 seized Bitcoin worth approximately $5 billion, increasing the likelihood that the assets will remain with the UK Treasury.

According to a report by CoinDesk citing the Financial Times, the decision issued on October 12 narrowed the path for investors defrauded in China to recover their Bitcoin under English law. At the center of the case are 61,000 BTC seized by the Metropolitan Police in London during its investigation into Zhimin Qian; the report valued the assets at approximately 3.8 billion pounds, or $5 billion.

Why did the victims want English law to apply?

Qian defrauded more than 128,000 investors between 2014 and 2017 through a Ponzi scheme run through her company. After converting the stolen money into Bitcoin, Qian fled to the United Kingdom in 2017 and later pleaded guilty to fraud.

The victims argued that applying English law could allow them to claim ownership of the seized Bitcoin. Judge Mark Turner ruled that the fraud, the transfer of the money, and the resulting losses all took place in China, and that the claims should therefore be assessed under Chinese law.

The ultimate owner of the Bitcoin has not yet been determined

Although the decision strengthens the possibility that the UK Treasury will retain the assets, it does not determine who will get the 61,000 BTC. The victims’ lawyers are appealing the decision.

The Crown Prosecution Service (CPS) said whether the victims can establish a right to the Bitcoin will be considered at a later hearing. The process will therefore continue with an examination of ownership claims following the decision on which law applies.