The UK High Court ruled that Chinese law governs claims to more than 61,000 seized BTC. Victims of Zhimin Qian's fraud scheme must now show a proprietary interest under Chinese legal standards. Future hearings and possible appeals remain.
The UK High Court ruled that Chinese law governs claims to more than 61,000 BTC, valued at approximately $5 billion. That makes the path to recovery steeper for thousands of fraud victims hoping to share in the haul.
What the court decided
Mr Justice Mark Turner handed down the ruling on or around October 12, 2026. The case sits within civil recovery proceedings brought under the Proceeds of Crime Act 2002, targeting assets linked to Zhimin Qian.
Claimants now need to show a proprietary interest in the Bitcoin under Chinese legal standards. A creditor claim on its own will not be enough.
The distinction matters: a creditor claims money is owed, while a proprietary claimant claims specific property is theirs. Roughly 16,000 victims are reported to have joined the UK proceedings, and each now faces a hurdle defined by Chinese property law.
How the Bitcoin got here
The coins trace back to a Ponzi-style scheme that ran from 2014 to 2017 through a company based in Tianjin, China. Victims, mostly Chinese investors, signed at least 128,409 investment contracts, and their combined losses came to around RMB 40.2 billion, or roughly £4.1 billion.
The money was converted into Bitcoin through Huobi and through over-the-counter trades in China. Qian moved to the UK in 2017. In November 2025, Qian was sentenced to 11 years and 8 months for money laundering.
What happens next
The ruling strengthens UK authorities' position in retaining the Bitcoin's appreciated value. By raising the bar for victim claims, it potentially leaves more of the pot on the government's side.
However, the decision does not end the matter. Future hearings are set to examine how Chinese property rights work in this context, and victims may also pursue appeals.
Source: Crypto Briefing
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