UK Seeks to Keep $7 Billion in Seized Bitcoin: Fraud Victims Fight for Justice

The British government is at the center of one of the largest crypto disputes in history. More than 61,000 BTC — worth over $7 billion — seized in 2018 in connection with a Chinese investment fraud, is now the subject of a fierce legal battle. With the scheme’s organizer Zhimin Qian convicted, the key question arises: who will have the right to the seized crypto assets?

Victims vs. the State Qian, who ran a massive fraudulent investment system between 2014 and 2017, admitted to transferring and holding criminal property. During the investigation, British authorities secured 61,000 bitcoins, whose value has skyrocketed since then. Now, more than 120,000 victims in China are seeking to reclaim at least part of their funds through civil proceedings. The first hearing is scheduled for January 2026 at the UK’s High Court.

A Legal Dilemma Legal experts agree that victims have the right to compensation. However, under English law, compensation is typically calculated based on the value victims lost at the time of the fraud, not at today’s market price of BTC. This would mean victims are compensated in fiat currency, while the enormous profit from Bitcoin’s price surge would remain with the state. Past precedents have already confirmed this approach, with victims receiving back only their original contributions in pounds. “Victims have been waiting nearly a decade, many losing their life savings. If the court rules in favor of the state, their compensation will fall far short of the current value of the seized BTC,” warn lawyers representing the group of affected investors.

Political and Financial Tensions Should the British government be granted the right to keep most of the bitcoins, another crucial question arises: sell or hold? Sources within the UK Treasury suggested that such an unexpected windfall could help fill a “black hole” in public finances estimated at $34–67 billion. But selling the BTC could be risky. History recalls the controversial 1999 decision when the UK sold a large portion of its gold reserves just as prices hit rock bottom.

A Verdict with Far-Reaching Impact The ruling from the High Court could set a precedent for future cases involving seized cryptocurrencies. If the court confirms that victims are entitled only to the historical value of their losses, the 61,000 BTC may turn into an unexpected jackpot for the state. However, if the principle of equitable distribution prevails, British authorities may be forced to return a much larger share of the assets to the victims. The dispute, which could drag on for years, will ultimately determine whether the law stands by those defrauded—or strengthens the UK’s treasury.

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