China Initiates Recovery Process for $5.1 Billion in Bitcoin Seized by the UK

The Chinese prosecution has begun the recovery process for approximately 61,896 bitcoins worth about $5.1 billion that were seized by UK authorities. These bitcoins are assets related to a large-scale investment fraud case that affected over 100,000 people in China. The UK court is also conducting a separate recovery process. The Tianjin Second Intermediate People's Court in China received a confiscation application for assets related to the fraud case on the 28th of last month, which includes not only bitcoins but also Bitcoin Cash, XRP, Dogecoin, cash, and jewelry. The fraud case is linked to Chen Zemin, who raised 4.038 billion yuan (about $570 million) from 2014 to 2017 by promising principal guarantees and high returns. Chen Zemin fled to the UK, where UK police seized the related digital assets in 2018. The UK High Court has ruled that Chinese law should apply to the victims' claims of bitcoin ownership. The UK prosecution is also proceeding with a civil recovery process, and if the victims cannot prove ownership, the UK government will secure a legal basis to retain the seized assets. Even if a certain amount is compensated to the victims, a significant portion of the value generated from the rise in bitcoin prices may remain with the UK government. The simultaneous recovery application by the Chinese prosecution and the UK's civil recovery process has made the recognition of ownership by the victims a key variable in determining the final attribution of the bitcoins.

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