Key Takeaways
What prompted the British compensation action?
The Crown Prosecution Service has confirmed it will put in place a restitution plan following the £5 billion Bitcoin seizure.
What’s next in the case?
Sentencing for Qian and her associate is scheduled for November 10 and 11, after which a civil recovery and compensation order is expected to follow.
The British government is preparing to set up a compensation scheme for victims of Chinese crypto fraud.
The update, reported by The Financial Times on October 15 – follows the Metropolitan Police’s announcement in September.
The Crown Prosecution Service (CPS) has confirmed it will develop a restitution framework for the UK’s largest Bitcoin seizure.
The Met Police announced that they had seized 61,000 Bitcoin, now worth around £5 billion, from Chinese national Zhimin Qian (aka Yadi Zhang) and her associate, Seng Hok Ling.
Qian and Ling pleaded guilty at Southwark Crown Court last month to offenses under the Proceeds of Crime Act (2002). They orchestrated a massive investment fraud in China, killing more than 128,000 victims.
DPP confirms refund plan
According to the FT report, Director of Public Prosecutions Stephen Parkinson told victims that the government was exploring a formal compensation scheme. However, details have not yet been announced.
CPS barrister Martin Evans KC told the court such a framework would provide “adequate protection for victims”.
Evans revealed that Qian had recently released new access codes and passwords for additional wallets holding around £67 million worth of crypto assets.
A hidden ledger found in a pocket of her clothing during her arrest reportedly helped investigators locate the money.
The victims’ lawyer, William Glover of Fieldfisher, said the DPP has “accepted responsibility” to put in place a restitution process for those who cannot recover losses through standard legal channels.
Context: The world’s largest crypto seizure
The Met with the police Economic Crime Command described the case as the UK’s largest Bitcoin seizure and money laundering operation. They also stated that they had received assistance from Chinese law enforcement and the CPS.
Sentencing for Qian and Ling is scheduled for November 10 and 11 at Southwark Crown Court, after which a civil reparation and compensation order is expected.
Global parallel: US seeks forfeiture of $12 billion
The British move comes just days after the US Department of Justice filed a request to forgive 127,271 BTC (worth about $12 billion).
The fund is linked to a transnational “pig slaughterhouse” fraud by Chen Zhi, affiliated with Cambodia’s Huione Group.
This US case marked the largest crypto forfeiture in history, and showcased a growing international effort to recover illicit digital assets.