UK to compensate 128,000 investors after seizing 61,000 bitcoin

British authorities have moved to design a compensation scheme for more than 128,000 investors in a sprawling Chinese investment fraud after seizing 61,000 bitcoin from a key suspect, prosecutors and lawyers said at a London hearing this week. The seizure, made by the Metropolitan Police during a multiyear money‑laundering investigation, followed the 2018 arrival in the United Kingdom of Zhimin Qian, also known as Yadi Zhang, who has pleaded guilty to offences under the Proceeds of Crime Act. Sentencing is scheduled for November 10 and 11.

According to court filings and statements from lawyers representing victims, Qian and associates ran a fake wealth management operation in Tianjin between 2014 and 2017 that solicited funds with promises of high returns. Investigators say roughly 40 billion to 43 billion yuan was collected from investors during the scheme. Qian is accused of converting much of that money into bitcoin beginning in 2017 and attempting to launder the proceeds after fleeing China on falsified documents and settling in the United Kingdom.

The Metropolitan Police recovered 61,000 bitcoin between 2018 and 2021. Prosecutors and legal advisers told the court they are...