Finance

UK’s $6.4 Billion Bitcoin Seizure: How a Chinese Pyramid Scheme Unraveled and What Happens Next

Yadi Zhang was sentenced for an $6.4B crypto pyramid scheme, defrauding 120k Chinese.

November 11, 2025, 11:33 AM

A stack of silver and gold Bitcoin coins resting on a pair of metal handcuffs.

A stack of Bitcoin coins sits inside a pair of metal handcuffs on a light gray background. By Igor Faun / Shutterstock.com.

Executive Summary

Zhimin Qian was sentenced to 11 years and eight months in prison for orchestrating a pyramid scheme that defrauded over 120,000 Chinese pensioners.

The scheme led to the UK’s largest cryptocurrency seizure, involving 61,000 Bitcoin now valued at approximately $6.4 billion.

The fate of the seized Bitcoin is a contentious issue, with a dispute between the UK government and China over its rightful ownership and ongoing civil proceedings to determine its distribution to victims.

The Story So Far

The current events stem from Zhimin Qian’s orchestration of a vast pyramid scheme, Lantian Gerui, which defrauded over 120,000 Chinese pensioners by promising high returns from advanced health products and cryptocurrency mining, leading to the UK’s largest cryptocurrency seizure and a significant dispute over the rightful ownership of the recovered funds.

Why This Matters

The sentencing of Zhimin Qian for a vast pyramid scheme, which led to the UK’s largest cryptocurrency seizure of $6.4 billion in Bitcoin, underscores the immense scale and international reach of digital asset fraud. The ongoing dispute between the UK government, China, and victims over the fate of these seized funds will set a crucial legal precedent for how governments handle and distribute large confiscated crypto assets from cross-border crimes, potentially influencing future policies on asset recovery and victim restitution in the digital age.

Who Thinks What?

Victims’ advocates, including legal representatives William Glover and Stephen Cartwright, assert that the 61,000 seized Bitcoin rightfully belongs to the defrauded investors who have been without their property for nearly a decade, and that the UK state lacks the right to freely dispose of these funds.

UK Treasury officials have reportedly considered retaining the seized Bitcoin to bolster public finances, rather than returning it directly to the victims.

Nick Harris, CEO of CryptoCare, suggests that retaining the confiscated Bitcoin could be a strategic move for the UK, allowing it to establish a reserve to strengthen its position in the global crypto economy while supporting victims through separate compensation mechanisms.

Zhimin Qian, a Chinese national also known as Yadi Zhang, has been sentenced to 11 years and eight months in prison by Southwark Crown Court for orchestrating a vast pyramid scheme that defrauded over 120,000 Chinese pensioners. The scheme led to the United Kingdom’s largest cryptocurrency seizure, involving 61,000 Bitcoin (BTC) now valued at approximately $6.4 billion.

Qian pleaded guilty in September to fraud and money laundering charges linked to her company, Lantian Gerui. This firm promised high returns from advanced health products and cryptocurrency mining ventures, primarily targeting elderly Chinese investors through elaborate banquets and rallies. Prosecutors stated that money paid to early investors came from new deposits, not legitimate business operations.

The Fraudulent Scheme and Arrest

The 47-year-old fled China in 2017 using a fake passport after payouts from Lantian Gerui ceased. She subsequently settled in the UK, where she maintained a lavish lifestyle. Her arrest in York in April 2024 followed a police raid on her Hampstead Heath mansion, where authorities discovered the substantial digital assets.

Qian’s Malaysian associate, Seng Hok Ling, received a sentence of four years and 11 months for his role as a financial conduit. Another associate, Jian Wen, a former takeaway worker, was previously sentenced to six years for helping launder millions through crypto exchanges and shell companies.

Dispute Over Seized Bitcoin

The fate of the 61,000 seized Bitcoin remains a contentious issue, sparking a dispute between the UK government and China. Victims’ advocates assert that the cryptocurrency rightfully belongs to the defrauded investors, while UK Treasury officials have reportedly considered retaining the funds to bolster public finances.

Civil proceedings are currently underway to determine the distribution of the seized Bitcoin, a process that is expected to take years. Complicating matters, many victims transferred fiat currency to regional promoters rather than directly to Lantian Gerui, raising questions about claims and who should benefit from the appreciated value of the crypto assets.

Expert Perspectives

William Glover and Stephen Cartwright, legal representatives for several victims, emphasized that the victims have been without their property for nearly a decade and are entitled to its recovery, arguing that the UK state lacks the right to dispose of the frozen Bitcoin freely. Conversely, Nick Harris, CEO of crypto asset recovery firm CryptoCare, suggested that retaining the confiscated Bitcoin could be a strategic move for the UK, establishing a reserve to strengthen its position in the global crypto economy while supporting victims through separate compensation mechanisms.