UK to decide if 61,000 BTC victims get loss value or current price

British authorities are seeking legal ownership of about 61,000 Bitcoin seized in 2018 in connection with an international investment fraud, setting up a High Court test in January over whether victims should be compensated at the original value of their losses or at today's market price. The cryptocurrency, now worth roughly 7 billion pounds, was recovered from devices and property tied to Zhimin Qian and her associate Seng Hok Ling after a yearslong probe by the Metropolitan Police Economic Crime team. Both defendants have pleaded guilty to offences involving criminal property; sentencing is scheduled later this year.

Court filings and expert commentary set out the central legal clash. Prosecutors have opened civil recovery proceedings under the Proceeds of Crime Act and related statutes. Victims, mainly in China, have launched civil claims seeking restitution, contending they are entitled to recover from the frozen Bitcoin at its current value. Lawyers representing some claimants said many lost life savings and have been without access to the assets for about a decade. A London partner advising victims cautioned that while tracing principles allow proprietary claims to...