How Chinese fraudster involved in £5.5 billion Bitcoin scam evaded UK authorities for six years
A Chinese fraudster involved in a Bitcoin scam worth more than £5.5bn managed to evade British authorities for years by staying in luxury hotels and traveling around Europe, a court has heard.
Zhimin Qian, 47, also known as Yadi Zhang, orchestrated a complex Ponzi scheme that defrauded more than 128,000 victims across China between 2014 and 2017.
The large amount of illegally obtained funds were then converted into Bitcoin assets and stored.
After his activities came to the attention of Chinese authorities, Qian fled to the UK in 2017 and became a “fugitive”. Once on British soil, he reportedly recruited accomplices to help him build a “new life”.
In the months and years following his arrival, Qian traveled extensively, frequenting luxury hotels throughout Europe.
His lavish lifestyle included major purchases such as expensive jewellery, a sentencing hearing at Southwark Crown Court heard on Monday; In one example, he was seen purchasing two watches for a sum approaching £120,000.
The businesswoman came to the attention of British authorities in 2018 and was subsequently arrested in April last year after remaining “at large” for nearly six years in what was described as the UK’s largest cryptocurrency seizure.
After pleading guilty to money laundering offences, Qian and his accomplice Seng Hok Ling, 47, will be sentenced on Tuesday for their roles in a multi-billion pound fake Bitcoin scheme.
When Qian and Ling were convicted of money laundering offenses in September, Bitcoin was priced at more than £5.5 billion.
It is understood that the number is constantly changing.
Prosecutor Gillian Jones KC told the sentencing hearing that Qian set up a fraudulent business called Lantian Gerui (meaning Blue Sky in English) in March 2014.
More than 128,000 victims invested in the company, many of whom lost “significant amounts of money.”
Qian’s fraudulent activities eventually came to the attention of Chinese authorities, causing him to flee the country before arriving in the UK in September 2017.
He recruited an accomplice named Jian Wen to help him “make a new life.”
The court heard Wen was “generously rewarded” for his services and changed his “life and prospects” overnight.
In September, Qian began renting a “lavish” property in Hampstead, London, by telling a “lie” to an estate agent that he was running a successful jewelery business.
The court heard the monthly rent for this property was £17,333.
In October 2017, Wen went to Thailand to retrieve the laptop where Bitcoin was stored, at Qian’s request.
Ms Jones KC said: “During the months and years following her arrival in the UK, Ms Qian traveled extensively throughout Europe, staying in expensive hotels and taking excursions, often accompanied by Ms Wen.
“During these trips, Bitcoin was transferred and sold for cash, fine jewelry was purchased, and the purchase of properties in Europe was considered.”
The court heard Qian was careful to stay away from countries that have an extradition treaty with China and traveled mainly by car to avoid customs checks.
The couple are heard spending £119,200 on one trip to buy two watches from a jeweler in Zurich, Switzerland.
Qian tried to buy a £12.5 million property in London in 2018 and UK authorities were notified after suspicions were raised about his Bitcoin.
Ms Jones KC said this served as the “catalyst for the subsequent investigation”.
UK police emailed Wen, who was trying to secure the property on Qian’s behalf, saying they had concerns about the source of the money.
The court heard Qian was aware that UK police were questioning the source of Bitcoin.
In October 2018, Metropolitan Police officers visited his home in Hampstead to execute a search warrant.
Qian was discovered in bed by officers and told them he was sick with pain in his leg and brain damage.
He gave a false name, Yadi Zhang, and the court heard that at this stage police had no idea who Qian was.
They discovered laptops containing millions of pounds worth of Bitcoin in his property.
Neither Qian nor Wen were arrested at this stage as the police were unaware of the scope of what they had uncovered.
During a later reconnaissance, officers found documents recording Qian’s “desires and intentions”.
Referring to a document, Ms Jones KC said: “(This) included an intention to become ruler of Liberland, a self-proclaimed country consisting of a strip of land between Croatia and Serbia.”
Following a police raid in October 2018, Qian fled the country.
The court heard he managed to “evade arrest” for nearly six years and eventually “escaped”.
Wen was arrested at a Hampstead address in London in May 2021 and subsequently charged with money laundering.
While his trial was ongoing, a Bitcoin transfer was made which led police to identify Seng Hok Ling at an address in York.
Police visited the address in April 2024 and found Qian and four other people.
They were all heard living at the address and working for Qian, undertaking tasks such as cooking, shopping and cleaning, but Qian remained “hidden” from the authorities.
Authorities discovered several devices at Qian’s address, including a laptop containing a cryptocurrency wallet containing £27.3 million worth of Bitcoin.
Qian was arrested at the address in York in April 2024 and taken to a local police station.
He remained silent for the most part, but the few questions he did answer, Qian maintained his innocence.
The court heard Ling, a Malaysian national, arranged to rent properties for Qian to live in, including Airbnb in Scotland.
Richard Thomas KC, mitigating the sentence on Qian’s behalf, said his client had “no previous criminal record” and had an “exemplary record” while in custody.
He said at the sentencing hearing that Qian “worked hard” to learn English in custody and even had his poetry published.
Narita Bahra KC, who represented Ling, said his client did not know the “full extent” of Qian’s guilt.
Qian, of no fixed abode, pleaded guilty to acquiring criminal property and possessing criminal property.
Ling, of Derbyshire, pleaded guilty to transferring criminal property.
Wen was convicted of money laundering following a trial at Southwark Crown Court. He was later sentenced to six years and eight months in prison.
Qian and Ling’s sentencing hearing is ongoing and will conclude on Tuesday.
