- Victims of a Chinese investment fraud are challenging a UK plan to pay them via a Chinese redress scheme, fearing it will leave British authorities with most of the proceeds from a $4.3 billion Bitcoin seizure.
- The UK High Court will determine if English or Chinese law governs claims to the 61,000 BTC, seized in 2018 from a money-laundering case linked to the fraud.
- Prosecutors warn the legal claims risk benefiting only “a small subset of victims and their litigation funders” with sums exceeding their actual losses.
Victims of a massive Chinese investment scam are now fighting in the UK High Court over a proposed compensation plan that could see British authorities retain most of a $4.3 billion Bitcoin fortune. The dispute, according to the Financial Times, centers on roughly 61,000 BTC seized by London police. Law firm Candey, representing thousands of victims, argues the UK-backed plan using a Chinese redress scheme may not ensure fair restitution.
Consequently, a preliminary hearing in July will decide whether English or Chinese law applies to the claims. Prosecutors, represented by Martin Evans KC, stated some claims could allow a few to recover more than their losses. However, Candey defends its legal action as the best path to proper compensation, with fees capped at 18% of recovered funds.
Meanwhile, the Bitcoin was seized in a 2018 raid linked to convicted money launderer Jian Wen and scheme mastermind Zhimin Qian, who was sentenced to over 11 years. Wen had previously attracted police attention by attempting to buy a luxury London mansion with crypto. The case highlights complex legal questions as seized digital assets can appreciate massively between confiscation and restitution.
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