Chinese Woman Admits To Conducting The Biggest Bitcoin Fraud In History

UK police broke crypto history with a new token seizure, taking BTC worth $7.3 billion. This is roughly equal to the British government’s entire crypto holdings.

This fortune belonged to Zhimin Qian, a Chinese national who defrauded around 128,000 people over three years. Her holdings could potentially aid a future Bitcoin Reserve in the UK.

The UK’s Major Crypto Seizure

The Bybit hack from earlier this year was heralded as the largest theft in Web3 history, with roughly $1.5 billion in assets stolen. This was a tremendous single-day incident, but a new crypto seizure from the UK broke a new kind of record: $7.3 billion in one police action.

According to local media, Chinese national Zhimin Qian pleaded guilty to a long-running crypto scam. Between 2014 and 2017, she defrauded around 128,000 people, storing the proceeds in Bitcoin.

She then moved to Britain in 2018, attempting to launder money by purchasing property.

However, police conducted a seven-year investigation, leading to today’s guilty pleas. Between the size of her operation and BTC’s price gains, police seized a crypto stockpile that’s now worth $7.3 billion:

“This case, involving the largest cryptocurrency seizure in the UK, illustrates the scale of criminal proceeds available to those fraudsters. Today’s guilty plea by Zhimin Qian marks the culmination of many years of complex and detailed work by both the Metropolitan Police and the [Crown Prosecution Service,]” claimed Robin Weyell, a leading prosecutor on the case.

A New Opportunity?

UK police praised law enforcement and international cooperation in enabling this crypto seizure, but there are new unanswered questions now. The British government has been the third-largest national Bitcoin holder, but it has considered dumping its large holdings.

Now, however, this $7.3 billion crypto seizure could be a new opportunity for Britain. Apparently, Zhimin held about 61,000 BTC, which is roughly equivalent to the UK’s entire stockpile.

In other words, its Bitcoin wallets just doubled in size. Between Zhimin’s wallets and preexisting holdings, the UK might have a BTC stockpile that rivals the US.

Although America custodies a huge store of seized crypto, it plans to disperse much of this sum to fraud victims. It can’t actually build a Crypto Reserve with all its held tokens. However, since Zhimin’s victims were largely based in China, a nation with restrictive crypto policies, the UK might not be similarly obligated to reimburse tokens.

Nigel Farage, a hopeful for British Prime Minister, has been courting the crypto vote to improve his electoral chances. Although his off-hand comments about a Crypto Reserve don’t reflect a concrete plan, this seizure could be an opportunity.

If he takes office, Zhimin’s holdings might make a Reserve much more feasible.

Regardless of these tokens’ final fate, this is a momentous occasion. Although crypto crime is out of control right now, UK police obliterated records for token seizures. That’s a bullish sign for crypto crimefighters everywhere.