A significant criminal trial with implications for the handling of cryptocurrency-related crimes in British courts is set to commence in London on September 29. The defendant, Zhimin Qian, a Chinese national, is accused of orchestrating a cross-border investment fraud that involved converting proceeds into Bitcoin, currently valued at around $7 billion.
According to prosecutors, Qian operated a scheme in China that attracted nearly 130,000 individuals. Allegations suggest that she managed operations through Tianjin Lantian Gerui Electronic Technology Co. and promoted a Ponzi-style product between 2014 and 2017, promising returns ranging from 100% to 300%.
The scheme began to unravel in 2017 following China’s nationwide ban on cryptocurrency, leading authorities to claim that Qian fled to the UK that year and transferred the scheme’s proceeds into Bitcoin. As Qian faces criminal charges in the UK, legal experts caution that the international nature of the alleged misconduct could pose challenges for securing a conviction.
Yuhua Yang, a partner at Thornhill Legal in London, emphasized the complexities of prosecuting Qian due to the fraudulent activities primarily occurring in China without involvement from UK entities or assets passing through British financial institutions. Collecting evidence from China, such as victim statements and financial records, may prove challenging for UK authorities in proving the origins of the Bitcoins derived from fraudulent fundraising in China.
In the UK prosecution against Qian, the focus is on her possession and movement of cryptocurrency, as well as the acquisition, use, or possession of criminal property, rather than fraud or money laundering charges. This strategy is deemed more straightforward for a British jury, as it does not necessitate proving the underlying fraud according to the Anwar principles.
Looking ahead, the Supreme Court may serve as the final destination for the crypto dispute surrounding Qian’s case. Civil recovery proceedings are underway to determine how victims can be compensated from the substantial Bitcoin cache, estimated at $7 billion. Fairbrother anticipates that the civil case will likely reach the UK Supreme Court, underscoring the unprecedented scale of the fraud and the complexities surrounding crypto-linked assets and cross-border fraud at the highest judicial level.