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Chinese fraud victims pursuing more than 61,000 Bitcoin seized by British authorities lost a key legal round after Justice Mark Turner of London’s High Court ruled that Chinese law, not English law, governs their claims to the assets, Cointelegraph reported.
The Monday judgment rejected the claimants’ arguments for applying English law, or a blend of English and Chinese law, to their ownership claims. Turner held that Chinese law must decide whether the applicants hold property rights in the seized Bitcoin, leaving the substance of those claims for later proceedings, according to Cointelegraph.
Also read: US Government Moves $1.01B in Seized Bitfinex Bitcoin to New Wallet
Key facts
- Justice Mark Turner ruled that Chinese law must determine whether the claimants have property rights in the seized Bitcoin, and left the validity of the claims for subsequent proceedings.
- Zhimin Qian, also known as Yadi Zhang, orchestrated the investment fraud between 2014 and 2017, and British authorities seized the assets during a money-laundering investigation.
- The seized Bitcoin is currently worth more than $5 billion, according to CoinGecko, while more than 128,000 investors were reportedly affected by the fraud.
- Crypto.news reported that about 16,000 victims have joined the UK recovery process, citing Caixin, and that the disputed coins are connected to an illegal fundraising operation run through Tianjin Lantian Gerui Electronic Technology.
- Qian received a prison sentence of 11 years and eight months at Southwark Crown Court on Nov. 11, 2025, after pleading guilty to two money laundering charges in September 2025.
Why the governing law question decides the money
The choice of law is not a technicality. The victims had sought English law partly because it could have let them assert direct ownership of the Bitcoin rather than stand in line as creditors, per Cointelegraph. Chinese law may instead limit their recovery.
Crypto.news reported that the Oct. 12 judgment could restrict participating Chinese investors to recovering their principal and interest rather than a share of Bitcoin’s price appreciation. The court did not decide who ultimately owns the assets, and the victims’ property rights under Chinese law have yet to be assessed.
Also read: Why Is Crypto Down Today? Bitcoin Falls 1.5% to $83.6K
The ruling also keeps the dispute in England. Law firm Fieldfisher, which represents claimants, is pursuing an appeal against Turner’s decision, according to a Financial Times report cited by Cointelegraph. The next stage will involve expert evidence on Chinese law to test whether the victims can establish ownership interests in the Bitcoin.
Where the accounts diverge
The two reports differ on the scope of participation. Crypto.news, citing Caixin, put the number of victims who have joined the UK recovery process at roughly 16,000. Cointelegraph, citing earlier CoinPulseHQ coverage, said the dispute involves more than 128,000 investors affected by the fraud overall. CoinPulseHQ also reported that law firm Candey represented about 5,700 victims.
Crypto.news traced the proceedings to the Director of Public Prosecutions’ civil recovery action under Part 5 of the Proceeds of Crime Act 2002, with investors applying under Section 281 to declare that property subject to recovery belongs to them. Duan & Duan partner Jackson Ng said the firm was reviewing the decision with its clients and would continue to pursue their claims, according to Crypto.news. Prosecutors had previously argued that certain claims could let a smaller group of victims and litigation funders recover more than their actual losses.
Why it matters
The outcome shapes whether victims of one of the largest crypto-linked frauds recover the appreciation in the seized coins or only their original outlay. It also tests how English courts handle cross-border crypto ownership claims, and the result will inform how later seizure and recovery cases are argued.
What to watch
The case stays before the High Court in London rather than moving to a Chinese court, and expert evidence on Chinese law will follow. The Crown Prosecution Service told the FT that a further hearing will examine how Chinese law applies and whether any victims can establish an interest in the seized assets.
Reported by cointelegraph.com.
Sources: Cointelegraph, Crypto.news