Chinese Crypto Queen Gets 11 Year Sentence Following £5B Bitcoin Bust In UK

TLDR

• Qian Zhimin received an 11-year, 8-month sentence for laundering Bitcoin worth billions of pounds, which prosecutors say was stolen from over 100,000 Chinese pensioners
• The 47-year-old fled China in 2017 and rented a £17,000-per-month London mansion before UK police seized what they believe is the country’s largest single cryptocurrency haul
• Her company Lantian Gerui promised 200% returns through crypto mining and health tech products but was actually a pyramid scheme paying old investors with new deposits
• Victims invested a total of 40 billion yuan ($5.6 billion) and are now fighting to recover their money through UK courts as Bitcoin’s value has increased more than 20 times since the seizure
• Any unclaimed cryptocurrency after legal proceedings could default to the UK government under proceeds of crime laws

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Qian Zhimin founded Lantian Gerui (Bluesky Greet) in China around 2013. The company claimed to mine Bitcoin and develop health technology products. Instead, prosecutors say it operated as a pyramid scheme.

The company attracted approximately 120,000 investors across every Chinese province. Total deposits reached 40 billion yuan according to the Crown Prosecution Service. Many victims were middle-aged and elderly Chinese citizens.

The scheme paid investors small daily amounts of around 100 yuan ($14). This created trust and encouraged people to invest more. Many took out loans at 8% interest rates to increase their stakes.

One victim called Mr Yu invested 60,000 yuan with his wife. They were promised 200% profits over two and a half years. The daily payments seemed legitimate but were actually funded by new investor money.

The company organized large events, holidays, and banquets to recruit more investors. They used patriotic messaging and endorsements from public figures. One event was held at the Great Hall of the People in Beijing.

Escape and Capture

Chinese police began investigating Lantian Gerui in mid-2017. Qian fled to the UK that September using a fake passport. She rented a mansion in Hampstead, north London for over £17,000 monthly.

Qian posed as a wealthy antiques and diamond heiress. She hired an assistant to convert her Bitcoin into cash and property. Her diary revealed plans to buy a Swedish castle and become queen of Liberland, an unrecognized microstate.

When Qian attempted to purchase a large property in Totteridge, her assistant could not explain the source of the wealth. This triggered a police investigation. Metropolitan Police raided her Hampstead home and discovered hard drives containing tens of thousands of Bitcoin.

Police arrested Qian in York in April 2024. Officers found four people at the property who had been brought from China to work illegally as staff. Qian initially denied all charges but pleaded guilty in September.

Judge Sally-Ann Hales sentenced Qian at Southwark Crown Court on Tuesday. The judge called her “the architect of this offending” and said her motive was “pure greed.” Qian received 11 years and eight months in prison.

The seized cryptocurrency has increased more than 20 times in value since 2017. A civil proceeds of crime case starting next year will determine its fate. Thousands of Chinese investors plan to file claims.

Victims must prove their investments, which is difficult since many paid local promoters rather than the company directly. The Crown Prosecution Service is considering a compensation scheme for unrepresented victims. Any remaining funds would normally go to the UK government.

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