UK police have executed the largest single cryptocurrency seizure in the industry’s history, and a Chinese woman, who is believed to be the mastermind behind the multi‑billion‑dollar fraud, has been convicted. Zhimin Qian, also known as Yadi Zhang, has pleaded guilty to illegally acquiring and possessing criminal property, according to a statement from the Metropolitan Police published on September 29. The 47-year-old Chinese national was found to be at the centre of a years-long scheme that defrauded over 128,000 victims in China between 2014 and 2017. Her guilty plea marks a turning point in what investigators have described as one of the most complex and far-reaching financial crime investigations they have ever undertaken. Qian’s multi-year operation involved soliciting funds from tens of thousands of Chinese investors under the guise of legitimate business and investment opportunities, many of which were tied to the then-burgeoning world of cryptocurrencies. Authorities said the investments were aggressively marketed as safe, high-yield opportunities, with some investors lured by promises of daily dividend payouts and guaranteed returns. Promotional material distributed by Qian’s company went further, linking the scheme to China’s broader national strategy by claiming it was aligned with the country’s ambitions to become a global leader in finance and technology. Some of the promotional material even showcased fake projects and partnerships that did not exist, authorities said in the Monday statement. A major pyramid scheme According to Chinese media reports, most of the investors that were targeted were aged between 50 and 75 years old, and many of them were referred to the scheme by friends or family members who had already bought in. Such fraudulent schemes are commonly referred to as pyramid schemes , which rely on a continuous influx of new participants to deliver promised returns using funds sourced from early entrants. Qian herself was dubbed the “goddess of wealth” among her followers, with an almost mythical reputation that helped mask the true nature of the operation. Investors included people from all walks of life, from business professionals to members of the judiciary. After defrauding her victims, Qian fled China using false documentation and entered the UK, where she allegedly tried to launder the proceeds by purchasing property and other assets. Authorities began investigating the scheme in 2018 after receiving a tip-off about suspicious cryptocurrency transfers. What followed was a seven-year-long investigation that required cooperation across multiple international jurisdictions. Qian and her accomplices acquired 61,000 BTC In total, law enforcement officials seized 61,000 Bitcoins linked to Qian, an amount that has since appreciated significantly in value and is now worth more than $7.3 billion. The scale of the haul makes it the largest single cryptocurrency seizure to date and eclipses even major exchange hacks such as the Bybit incident, and effectively doubles the amount of cryptocurrency currently held by the British government. Investigators also uncovered the involvement of Jian Wen, a 44-year-old woman who once worked in a Chinese takeaway restaurant and helped Qian launder large sums of money. Wen reportedly moved from living above a restaurant to renting a multimillion-pound home in North London. Authorities also found she had bought property worth over half a million pounds in Dubai, and more than $300 million in bitcoin was seized from her. She was sentenced to six years and eight months in prison last year. Authorities in China have managed to offer victims some restitution via a compensation scheme, and British authorities are now working to ensure that the fraudsters do not reclaim the remaining funds. Qian remains in custody as she awaits sentencing. No date has yet been set for the hearing, but the Crown Prosecution Service has indicated that it is working closely with the Metropolitan Police to determine next steps. Similar crypto scams continue to falter Just weeks before Qian’s conviction, another crypto-related scam came to light in the United States. On September 17, a Denver-based pastor and his wife were found guilty of duping more than 500 members of their Christian community into investing in a fraudulent cryptocurrency called INDXcoin. The couple, Eli and Kaitlyn Regalado, were ordered by a Colorado court to pay over $3.3 million in restitution after being found guilty of securities fraud and other charges. The post China’s ‘goddess of wealth’ convicted as UK police seize $7.3B Bitcoin in fraud case appeared first on Invezz
