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Woman to be Sentenced for Crypto Fraud After Stealing Billions from Chinese Investors
A woman accused of buying cryptocurrency now worth billions of pounds with funds stolen from thousands of Chinese pensioners is set to be sentenced this week for money laundering.
After fleeing China, she relocated to a mansion in Hampstead, north London, where the Metropolitan Police raided the property a year later, uncovering one of the world’s largest crypto seizures.
Over 100,000 Chinese people invested their money in her company, which claimed to develop high-tech health products and mine cryptocurrency. However, authorities say it was an elaborate scam, with the woman embezzling the funds.
As she awaits sentencing, investors have expressed hope that they will recover at least some of their money from UK authorities. Any remaining funds, if unclaimed, would typically revert to the UK government, leading some to speculate that the Treasury could benefit from the seizure.
“If we can gather all the evidence together, we hope the UK government, the Crown Prosecution Service, and the High Court can show compassion,” said one victim, known as Mr Yu, who claims his marriage collapsed as a result of the fraud. “Because now, it’s only that haul of Bitcoin that can return us a little bit of what we lost.”
Qian Zhimin, 47, arrived in the UK under a fake passport in September 2017 after Chinese authorities began investigating her. She moved into a luxury mansion in Hampstead, renting it for over £17,000 ($22,700) a month. To fund this lavish lifestyle, she needed to convert her Bitcoin holdings into usable cash, which she did by posing as a wealthy antiques and diamond heiress. She also hired a former takeaway worker as her personal assistant, who was tasked with converting the cryptocurrency into assets like cash and property.
As the value of Bitcoin surged, Qian was able to fulfil the promises made to investors that they could “get rich while lying down.” Her assistant, Wen Jian, later convicted of money laundering and sentenced to six years in prison, testified that Qian spent most of her days lying in bed, gaming, and shopping online, while plotting future schemes.
Qian’s grand plans, detailed in her diary, included founding an international bank, purchasing a Swedish castle, and even ingratiating herself with a British duke. One of her most ambitious goals was to become the queen of Liberland, a small unrecognised microstate on the Croatian-Serbian border, by 2022.
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Attempts to buy a large property in Totteridge Common, an area known for its large, secluded residences, triggered a police investigation when Wen could not explain Qian’s wealth. The subsequent police raid on Qian’s Hampstead home uncovered hard drives and laptops loaded with tens of thousands of Bitcoin, believed to be the largest cryptocurrency seizure in UK history.
Qian’s company, Lantian Gerui (Bluesky Greet in English), promised investors high returns through cryptocurrency mining and investments in advanced technologies. However, UK police believe this was a front for a scam, with Qian using promises of big profits to lure more investors into the scheme.
“Qian was very manipulative, able to persuade a lot of people,” said Detective Constable Joe Ryan from the Metropolitan Police.
Mr Yu, one of the investors, explained that he had never suspected anything was wrong because the company regularly paid him small amounts, which made him feel confident enough to invest more money, even borrowing from banks at high-interest rates.
Qian’s company also held large meetings and banquets in China to promote further investments. Using appeals to patriotism and endorsements from influential figures, including the son-in-law of the late Chairman Mao, the company managed to gather over 120,000 investors across China, with total deposits exceeding 40 billion yuan ($5.6bn, £4.2bn).
Despite Qian’s secretive nature, known only as Huahua or Little Flower to her clients, she became a figure of admiration for those who invested significant sums in her scheme. One such investor, Mr Li, described how Qian encouraged her biggest investors to “dream big,” promising wealth for generations to come.
The collapse of the scheme began in mid-2017 when Chinese police started investigating Lantian Gerui. Payments to investors stopped, with the company falsely claiming that the police were conducting checks.
Mr Yu later learned that Qian had paid off senior managers to keep investors from contacting the authorities while she fled to the UK with the stolen funds.
Qian’s plan, according to her diary, was to pay back her investors once the price of Bitcoin reached £50,000 per coin. However, her primary focus seemed to be on building her empire in Liberland, with millions earmarked for this project.
Qian was arrested in York, UK, in April last year. Police discovered four other people at her home, brought to the UK to work for her in various capacities, including shopping and security. These individuals were employed illegally.
At the time of her arrest, Qian denied the charges, claiming she was fleeing a Chinese government crackdown on crypto entrepreneurs. However, she later pleaded guilty to acquiring and possessing cryptocurrency illegally.
The value of the cryptocurrency Qian seized has increased more than 20 times since her arrival in the UK. Its fate will be determined in a civil “proceeds of crime” case scheduled for next year.
Thousands of Chinese investors are expected to make claims in this case, though proving their eligibility will be difficult, particularly for those who did not directly transfer money to Qian’s company but to local promoters. It remains unclear whether the victims will receive only their original investments or an amount reflecting Bitcoin’s subsequent rise in value.
As in other “proceeds of crime” cases, any remaining funds will default to the UK government. The BBC contacted the UK Treasury about the fate of any leftover money but received no response. The Crown Prosecution Service is also considering a compensation scheme for those without legal representation in the case.
