Woman Faces Sentencing in UK for £5 Billion Cryptocurrency Fraud
Qian Zhimin, 47, is scheduled to be sentenced this week in the UK for money laundering offenses. Police state that Zhimin acquired cryptocurrency, now valued at billions of pounds, through funds allegedly stolen from thousands of Chinese investors. Following an investigation initiated by Chinese police, Zhimin fled China and established residence in a mansion in Hampstead, north London, paying over £17,000 ($22,700) per month in rent.
Scheme Details and Investor Impact
Zhimin's company, Lantian Gerui (English name: Bluesky Greet), operated in China, claiming to develop high-tech health products and mine cryptocurrency. UK police believe the operation was a fraudulent scheme that utilized promises of high profits to attract approximately 120,000 investors across all Chinese provinces. The Crown Prosecution Service (CPS) estimates investor deposits exceeded 40 billion yuan ($5.6 billion, £4.2 billion). Investors received daily payouts, which a former company employee later testified were funded by new investors' money rather than legitimate crypto-mining dividends. One victim, identified as Mr. Yu, stated that his marriage ended as a result of the fraud and expressed hope for the return of some funds from the seized Bitcoin.
Lantian Gerui's marketing strategy included staging large meetings, banquets, and promoting the company with patriotic rhetoric and endorsements, including one from the son-in-law of the late Chairman Mao. The company also organized events at significant venues such as the Great Hall of the People. Zhimin, known to clients as Huahua or Little Flower, maintained a secretive profile but engaged directly with major investors who deposited at least 6 million yuan ($842,000).
Flight to the UK and UK Operations
Qian Zhimin arrived in the UK in September 2017 using a false passport. To finance her lifestyle, she reportedly converted her Bitcoin holdings into other assets. She presented herself as a wealthy antiques and diamond heiress and hired Wen Jian, a former takeaway worker, as her personal assistant to facilitate these conversions, including purchasing property. Wen Jian was subsequently sentenced to a six-year jail term for money laundering.
An attempt by Zhimin to acquire a large property in Totteridge Common led to a police investigation when Wen Jian could not provide a legitimate explanation for Zhimin's wealth.
Arrest and Legal Proceedings
Police raided Zhimin's rental property in Hampstead, discovering hard drives and laptops containing tens of thousands of Bitcoin. This seizure is considered one of the largest cryptocurrency seizures in UK history. Zhimin's diary entries reportedly outlined plans to pay back debts in China once Bitcoin reached £50,000 per coin, alongside ambitions to establish an international bank, purchase a Swedish castle, and become a significant figure in Liberland, an unrecognised microstate.
Qian Zhimin was arrested in York in April. During her arrest, police also found four individuals who had been illegally brought to the UK to work for her in roles such as shopping, cleaning, and security. Initially, Zhimin denied the charges, claiming she was evading a Chinese government crackdown on crypto entrepreneurs and disputing Chinese police evidence. However, she pleaded guilty in September to illegally acquiring and possessing cryptocurrency.