Chinese national guilty plea and seizure of nearly $7 billion in bitcoin

A Chinese national has pleaded guilty to running a fraudulent investment scheme. As part of the investigation, UK police seized nearly $7 billion worth of Bitcoin during a raid at her home.

She allegedly promised returns of nearly 300 percent and, in the process, stole billons of dollars from more than 128,000 victims.

Background and seized bitcoin

In an October 2018 raid, the police discovered several laptops containing the keys to around 61,000 bitcoin.  This represents the largest bitcoin seizure in the world, with the haul now valued at approximately £5.5 billion (at current prices).

What happens to the seized bitcoin?

Sky News is reporting that intense negotiations are underway between the UK and Chinese authorities over the stolen funds. The UK government is keen to use the funds to plug budget holes, while the Chinese authorities want them returned to victims. This will be an interesting negotiation to follow.

Previous enforcement actions

We have been tracking UK bitcoin enforcement actions, including:

• FCA seizes seven crypto ATMs and arrests two as part of illegal crypto asset exchange investigation.
• UK arrests in alleged £1 billion illegal crypto firm.

New powers for the seizure and recovery of cryptoassets

Since April 2024, UK authorities have been granted new powers to seize and confiscate cryptoassets. However, these powers have been used to varying degrees by different agencies:

• How much have the Serious Fraud Office and HM Revenue and Customs used Crypto Wallet Freezing and Forfeiture Orders since their April 2024 introduction?

Encouragingly, the Serious Fraud Office recently obtained its first Crypto Wallet Freezing Order:

• Serious Fraud Office secures first Crypto Wallet Freezing Order.

We have also explored these new powers in a series of articles:

• What is a Crypto Wallet Freezing Order?
• How will measures in the Economic Crime and Corporate Transparency Act 2023 assist law enforcement in seizing and recovering crypto assets?
• Can UK law enforcement seize cryptoassets?

Increased reports of crypto fraud and scams – more from Gherson

The team have previously written a blog entitled  what to do if you think that you have been victim to a crypto fraud or scam. This followed an earlier blog, entitled what can you do to try and help avoid a crypto fraud of scam? and a blog entitled what to do if your NFT has been stolen.

Criminal investigations and litigation

Gherson’s solicitors criminal litigation, regulatory and investigatory team combine an expert knowledge of criminal and regulatory law underpinned with a firm understanding of digital assets and blockchain technology.  As such, the team are able to provide expert strategic advice to anyone wanting to investigate and pursue a potential theft of crypto assets.

The team are also able to provide advice to anyone facing an investigation in relation to any allegation of criminality involving cryptoassets.

Regulation and compliance

In these constantly changing times, firms that deal with cryptoassets, and additionally have exposure to firms that do, will need to carefully consider all their systems and controls to ensure that they are able to comply with all relevant AML and sanctions regulations.  Gherson’s white-collar crime and regulatory team are able to provide advice and assistance with AML and sanctions compliance, including in situations involving cryptoassets.

Please do not hesitate to contact us for further advice, send us an e-mail, or alternatively, follow us on X or LinkedIn to stay up-to-date.

The information in this blog is for general information purposes only and does not purport to be comprehensive or to provide legal advice. Whilst every effort is made to ensure the information and law is current as of the date of publication it should be stressed that, due to the passage of time, this does not necessarily reflect the present legal position. Gherson accepts no responsibility for loss which may arise from accessing or reliance on information contained in this blog. For formal advice on the current law please do not hesitate to contact Gherson. Legal advice is only provided pursuant to a written agreement, identified as such, and signed by the client and by or on behalf of Gherson.

©Gherson 2025