Bitcoin News Update: Nationalist Cryptocurrency Fraud Cons People Out of $6.5 Billion, Affecting 128,000

Dubbed the "Cryptoqueen," a Chinese entrepreneur accused of running a $6.5 billion

money laundering operation is now awaiting sentencing in the UK after authorities made one of the largest cryptocurrency confiscations ever recorded. Zhimin Qian, who also goes by Yadi Zhang, deceived tens of thousands of Chinese citizens through a Ponzi scheme masked as a cutting-edge health technology and crypto mining business. She escaped to the UK in 2017, where she spent the illegal earnings on luxury living and property acquisitions .

Qian's prosecution has attracted international interest as British officials emphasize their increased crackdown on cryptocurrency-related fraud. The Metropolitan Police disclosed that the 47-year-old orchestrated a scam that ensnared more than 128,000 individuals in China between 2014 and 2017, promising returns as high as 200% on their investments

. The fraudulent operation, run through her firm Lantian Gerui, utilized a typical Ponzi model, paying earlier participants with funds from new recruits. Chinese authorities uncovered the scheme in 2017, leading Qian to flee to the UK using a forged passport .

Once in London, Qian continued her illegal activities, renting a mansion in Hampstead for £17,000 a month and employing a personal assistant to help convert her Bitcoin holdings into usable assets . Her assistant, Jian Wen, was sentenced to six years in prison after admitting to laundering $2 billion in crypto. Another accomplice from Malaysia, Seng Hok Ling, also confessed to money laundering and is awaiting sentencing. Qian was apprehended in April 2024 after police searched her home in York, confiscating 61,000 BTC—valued at over $6 billion today—along with cash, gold, and other valuables .

Many of the victims, including elderly Chinese retirees, invested their life savings in Qian's operation, believing they were supporting a state-endorsed project. "They told us they wanted to make China the world's number one," recalled Mr. Yu, a victim who lost his savings and suffered family breakdown as a result

. Lantian Gerui's promotional campaigns played on national pride, featuring events at Beijing's Great Hall of the People and endorsements from prominent individuals, such as the son-in-law of former Chinese leader Mao Zedong .

The Crown Prosecution Service (CPS) in the UK has initiated a civil asset recovery case to decide how the seized Bitcoin will be allocated. More than 1,300 victims have come forward, but the process of returning funds is complicated, as many invested through local agents rather than directly with Qian

. Any assets that remain unclaimed will revert to the UK government, sparking speculation about a possible windfall for the Treasury. The CPS is also considering a separate compensation plan for victims lacking legal counsel, though specifics are still being worked out .

Qian is scheduled to be sentenced in November 2025 and could face up to 14 years in prison. Detective Constable Joe Ryan from the Metropolitan Police described her as "highly manipulative," stressing the vast scale of the scam and her central role in its execution

. With Bitcoin's price rising from $3,600 in 2018 to over $100,000 today, the case highlights the increasing dangers of unregulated crypto investments. The UK's recent regulatory initiatives, including a proposed framework for stablecoins and cross-Atlantic cooperation with the US, are designed to curb such schemes while encouraging innovation .