UK Court Ruling Limits Bitcoin Gains for Chinese Fraud Victims

The dispute stems from a fraudulent investment scheme operated by Tianjin Lantian Gerui Electronic Technology between 2014 and 2017. While the seized Bitcoin is currently held in the UK, Mr Justice Turner ruled that the original investment contracts and the conversion of funds into digital assets were transactions centered in China. Consequently, the court rejected attempts to apply English law to determine ownership rights, leaving applicants to navigate the complexities of Chinese legal standards in future proceedings.

Legal representatives from Duan & Duan UK LLP are currently reviewing the implications of the October 12 decision. Under the Proceeds of Crime Act 2002, claimants must establish a clear ownership interest in the assets to succeed in recovery. Simply holding a personal claim against the fraudster for repayment is insufficient for a declaration of property ownership. The mastermind of the fraud, Qian Zhimin—also known as Yadi Zhang—was sentenced in November 2025 to over 11 years in prison for money laundering, following a scheme that defrauded approximately 128,000 individuals.