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The Victims of Investment Fraud Scheme Seek Recovery of 61,000 Bitcoins
The victims of an investment fraud scheme are urging China to negotiate with the UK government to recover 61,000 Bitcoins seized in a money laundering investigation. This Bitcoin, valued at $4.3 billion, is linked to a $6.2 billion wealth management fraud carried out by Chinese company Tianjin Lantian Gerui Electronic Technology between 2014 and 2017.
Background of the Fraud Scheme
- More than 128,000 individuals were defrauded in the wealth management fraud.
- The UK government became aware of the situation when Jian Wen, a former restaurant worker, attempted to purchase a $30 million property with Bitcoin without explaining the source of the funds.
- An investigation led to the seizure of 61,000 Bitcoins, worth $1.7 billion at the time, from a property linked to Wen and her boss Zhimin Qian, the alleged mastermind.
Legal Proceedings and Conviction
Jian Wen faced trial for assisting Qian in converting Bitcoin into cash, jewellery, and property. Despite denying the charges, Wen was convicted of three counts of money laundering by the Southwark Crown Court on March 20th.
Efforts to Reclaim Seized Bitcoin
Following the conviction, victims of the scam are seeking the return of the Bitcoin purchased with their money. A group representing the victims has reached out to China’s Ministry of Foreign Affairs and Ministry of Public Security, urging them to negotiate with the UK government for the return of the seized Bitcoin.
The victims have submitted evidence to prove their status as legitimate owners and are adamant about reclaiming what is rightfully theirs.
Support for Victims
Victims who enrolled with Chinese police have received partial reimbursements from assets recovered from Lantian Gerui and its former employees. The Industrial and Commercial Bank of China has also pledged assistance in the return process, estimating that 207,000 individuals invested in the fraudulent scheme.
Ian is a cryptocurrency enthusiast blending humor with professionalism. With an engineering background and a storyteller's heart, he simplifies the blockchain world with sharp analysis and a touch of wit. At Cryptowire, he brings his unique perspective to make digital financial innovation accessible to all.
