China Moves to Confiscate 61,800 Bitcoin Seized in Britain

Chinese prosecutors are seeking to confiscate more than 61,800 bitcoin connected to one of the country's largest alleged investment frauds. The coins are currently held by authorities in the United Kingdom.

The case

According to CoinDesk and crypto.news, citing Chinese media, the Tianjin No. 2 Intermediate People's Court said on Oct. 13 that it had accepted the prosecutors' application on Sept. 28. The case centers on Qian Zhimin, whose company allegedly sold unlicensed investment products between 2014 and 2017. Prosecutors say it raised about 40.4 billion yuan (roughly $5.7 billion) from more than 102,000 investors, who lost close to 20 billion yuan.

Qian left China in 2017 and was later convicted and jailed in the U.K. British police seized the bitcoin, along with other crypto and assets. The court has given victims and other interested parties six months to join the proceedings.

Two countries, one stash

The Chinese move follows a recent ruling by the U.K. High Court that Chinese law should govern victims' ownership claims to the coins. CoinDesk reported that the ruling does not settle who ultimately receives the bitcoin, and further hearings are expected. Unchained, via Yahoo Finance, valued the 61,896 coins at about $5.1 billion at a bitcoin price near $82,200, based on CoinGecko data.

Why it matters

This is one of the largest single government-held bitcoin stashes. Traders watch such holdings closely because a decision to sell them could add supply to the market. No sale has been announced.