UK court rules Chinese law governs claims to 61,000 seized bitcoin

A London court has ruled that Chinese law governs claims by fraud victims over 61,000 bitcoin seized by police, strengthening the U.K. government's position to retain most of the roughly £3.8 billion ($5 billion) holding, the Financial Times reported.

Court applies Chinese law to victim claims. Mr Justice Mark Turner of the London High Court determined that the underlying fraud and resulting losses all occurred in China. The judge noted that investors parted with their money in China, received fraudulent representations there, and suffered economic harm there.

The ruling rejects arguments that English law should apply because the bitcoin is held in Britain. It addresses only the governing law and does not decide final ownership of the coins.

Case stems from large-scale Ponzi scheme. Zhimin Qian pleaded guilty to defrauding more than 128,000 investors through her company Tianjin Lantian Gerui Electronic Technology between 2014 and 2017. She converted the proceeds into bitcoin and fled to the U.K. in 2017. Police seized the 61,000 BTC in 2018.

Qian was sentenced in November 2025 to 11 years and eight months in prison. The Metropolitan Police investigation led to the seizure now valued at about £3.8 billion.

Victims plan appeal while further hearings continue. Lawyers for the victims are appealing the decision, according to the FT. The Crown Prosecution Service has stated that a future hearing will examine whether any victims can establish an interest in the bitcoin under Chinese law.

The judgment narrows the victims' recovery options but leaves the substantive ownership question unresolved in the London High Court.