UK Seeks to Keep $6.7B in Seized Bitcoin

The UK government is moving to retain more than 61,000 Bitcoin, worth around $6.7 billion, after seizing the funds from a massive Chinese fraud case. The battle over this seized Bitcoin treasure is shaping up to be one of the most significant legal and financial stories in recent years.

How the Bitcoin Was Discovered

Back in 2018, investigators searching a luxury mansion in Hampstead, north London, uncovered several electronic devices. At first, authorities did not realize they had stumbled upon what would later become the UK’s largest-ever crypto seizure.

On those devices sat more than 61,000 Bitcoin. The digital assets were linked to Zhimin Qian, also known as Yadi Zhang, who had already fled China under a false identity. She had shifted investor money into Bitcoin while running a fraudulent investment company between 2014 and 2017.

The scheme promised returns as high as 300%, tricking more than 128,000 victims. Together with Malaysian associate Seng Hok Ling, Qian laundered vast sums into the UK before being caught. Both pleaded guilty to money laundering charges in London earlier this year.

Why the Battle Is Intensifying

Now, the focus has turned to who should benefit from the seized Bitcoin treasure. Lawyers for victims argue they deserve compensation at the current Bitcoin value, not just the original sums lost years ago. They point to the delays, the growth of Bitcoin’s value, and the devastating losses suffered by ordinary people.

On the other hand, UK officials are debating whether the government should retain control of the funds. Some Treasury insiders even suggest the Bitcoin could help reduce the fiscal burden in the next national budget. Still, others warn that ongoing legal appeals may delay any outcome until at least 2027.

A Legal and Market Dilemma

The upcoming civil hearing in January will push the debate forward. Yet, regardless of the outcome, there are additional challenges. One pressing issue is how the government could safely liquidate such a large Bitcoin stash.

Selling tens of billions worth of Bitcoin on the open market could spark a major price shock. With crypto markets already volatile, officials must weigh timing, scale, and method of liquidation very carefully.

The Office for Budget Responsibility currently does not include asset seizures in its fiscal forecasts. This means any final resolution may not appear in public balance sheets until much later.

Rising Crypto-Related Attacks

While the case unfolds, a separate report highlights the darker side of the crypto boom. According to CASA co-founder Jameson Lopp, physical attacks targeting Bitcoin and crypto holders surged by 169% in just six months.

France alone accounted for 14 of this year’s incidents. In Canada, a particularly shocking case saw a man abducted at gunpoint and forced to transfer funds into a crypto wallet.

This trend underscores the risks surrounding digital wealth, especially as large fortunes, like the UK’s seized Bitcoin treasure, make global headlines.

What’s Next?

For now, the UK’s High Court will play a central role in deciding whether the victims or the government will benefit from the Bitcoin haul. Both Qian and Ling await sentencing in November, but legal appeals over the assets could stretch years longer.

Regardless of the final outcome, the seized Bitcoin treasure story highlights the growing importance of crypto in legal systems, financial planning, and even public safety.

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