The UK High Court has ruled that Chinese law governs claims to 61,000 BTC seized from convicted fraudster Zhimin Qian. This decision complicates efforts by thousands of victims to reclaim the assets, which are currently valued at approximately $5 billion.
Qian was sentenced to over 11 years in prison for running a Ponzi scheme between 2014 and 2017. Victims reportedly invested about ¥40.2 billion, or roughly £4.1 billion, into the scheme. While ¥34.1 billion was returned to some participants, the remaining funds were converted into the seized Bitcoin.
Justice Mark Turner determined that because the fraud and financial transactions occurred in China, Chinese law must apply. The ruling suggests that victims cannot use English law to establish proprietary interests in the seized coins. The law firm Fieldfisher, representing the claimants, plans to appeal the decision.
The final ownership of the Bitcoin remains undecided, with further hearings scheduled to address the application of Chinese law. Previously, UK Treasury officials have discussed the possibility of using the seized assets, which were valued at $7 billion during the trial, to address public finance gaps.
