Chinese prosecutors are seeking to confiscate 61,896.41552945 BTC and other assets that UK authorities seized from a fraud scheme. A UK High Court ruling says Chinese law governs the victims' proprietary rights, and the ownership fight is still open.
Chinese prosecutors are seeking to confiscate over 61,000 Bitcoin and related assets that UK authorities seized from an international fraud scheme. The Tianjin No.2 Intermediate People's Court accepted the application from the Tianjin Municipal People's Procuratorate No.2 Branch on Sept. 28.
The application targets illegal proceeds including 61,896.41552945 BTC plus other virtual currencies, cash, jewelry, and financial assets. Prosecutors are applying to confiscate the property as illegal proceeds and fruits of the crime.
The assets stem from a 2014-2017 Ponzi-style fraud run by the controller of a Tianjin company. The scheme raised over RMB 403.78 billion through false investment schemes and caused over RMB 199.77 billion in losses to more than 102,000 victims. The perpetrator fled to the UK in 2017, where authorities seized the Bitcoin and related holdings valued at several billion pounds.
Meanwhile, the UK courts have addressed who can claim the coins. The High Court ruled that Chinese law governs the existence and content of proprietary rights asserted by victims under POCA s.281. A victim cannot necessarily recover cryptocurrency simply by proving that Bitcoin was bought with money taken from them.
However, no evidence on the content of Chinese law has yet been submitted, leaving the ownership battle ongoing. The announcement period for interested parties runs six months from the 13th of October.
Source: The Daily Hodl
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