In a landmark judgment that highlights the global reach of financial crimes, a Chinese woman has been sentenced to nearly 12 years in prison by a UK court for laundering billions of dollars obtained through a massive cryptocurrency scam targeting elderly investors in China.
The Elaborate Crypto Fraud Scheme
Qian Zhimin, 47, masterminded one of the most substantial financial frauds in recent history, convincing over 120,000 Chinese investors to pour their savings into her company, Lantian Gerui (also known as Bluesky Greet). The company falsely claimed to be developing health products and engaging in Bitcoin mining operations.
According to court documents and witness testimonies, Zhimin's operation functioned as a classic pyramid scheme. The total deposits from investors exceeded 40 billion yuan ($5.6 billion), with victims spanning all provinces of China. The scheme specifically targeted middle-aged and elderly investors, exploiting their patriotism and social isolation.
The UK Connection and Lavish Lifestyle
When Chinese authorities began investigating her company in 2017, Zhimin fled to the United Kingdom using a fake passport. She established herself in a rented mansion in London's affluent Hampstead neighborhood, where she paid over £17,000 ($22,700) per month in rent alone.
During her time in the UK, Zhimin posed as an antiques and diamond heiress while employing a personal assistant to help convert her stolen Bitcoin into spendable assets. Her extravagant plans included ambitions to purchase a Swedish castle and establish an international bank.
Metropolitan Police raided her London property in 2018, discovering hard drives and laptops containing tens of thousands of Bitcoin - described by authorities as one of the world's single largest cryptocurrency hauls.
Investor Tragedy and Legal Proceedings
The human cost of Zhimin's scheme became painfully clear through victim testimonies. One investor, Mr. Yu in his 60s, described how the scheme initially paid daily returns of about 100 yuan ($14), creating false confidence that led him and his wife to borrow money for further investments.
"That made everyone feel really good until we lost all self-control, all critical judgment," Mr. Yu told investigators. Like thousands of others, they lost everything when payments abruptly stopped.
Zhimin was eventually arrested in York in April, initially denying allegations and claiming she was escaping a government crackdown on cryptocurrency entrepreneurs. However, during her September trial, she pleaded guilty to illegally acquiring and possessing cryptocurrency.
The seized Bitcoin has since multiplied more than twentyfold in value, creating complex legal questions about asset recovery for the defrauded investors.
Ongoing Legal Battles and Recovery Efforts
Thousands of Chinese investors are now seeking compensation through a UK civil case, though proving their individual losses remains challenging. The case highlights the international complications of cryptocurrency-related crimes and the difficulties victims face in recovering stolen funds.
Under UK law, any unclaimed funds from the seizure would typically default to the British government, adding urgency to the investors' compensation claims. The case represents one of the most significant cross-border financial crime prosecutions involving cryptocurrency, setting important precedents for future international cooperation in tackling similar schemes.
