Major Cryptocurrency Scam Conviction
A Chinese national has been convicted for her central role in what’s believed to be the largest cryptocurrency attack to date, with losses exceeding £5 billion (around $6.7 billion).
Zhimin Qian, also known as Yadi Zhang, admitted guilt on Monday at Southwark Crown Court in London for illegally acquiring and holding cryptocurrency.
From 2014 to 2017, she ran a large-scale fraud in China, deceiving over 128,000 individuals and accumulating stolen assets in Bitcoin, according to the Metropolitan Police. This case has emerged after a seven-year investigation into a complex global money laundering network.
Authorities seized about 61,000 Bitcoins from Qian. The investigation was initiated in 2018 following a tip regarding the transfer of criminal assets.
Detective Sergeant Isabella Grotto, who oversaw the investigation, noted that Qian managed to evade justice for five years before her capture, which required intricate work across several jurisdictions. She used forged documents to flee China and entered the UK, where she purchased properties in an attempt to launder the stolen money.
Qian also allegedly worked with Jian Wen, a Chinese takeaway employee, who was sentenced to over six years in prison last year for his role in the criminal activities. Wen has reportedly benefited from the scam, moving from living above a restaurant to luxurious rentals.
Additionally, Qian invested in two properties in Dubai worth over £500,000. The Metropolitan Police has stated that they reclaimed over £300 million in Bitcoin linked to Wen. The lack of evidence and the substantial Bitcoin holdings strongly suggested the funds were sourced from illegal activities.
Reports from Lifeek, a Chinese media outlet, indicated that many victims, mostly aged between 50 and 75, had invested vast sums into projects promoted by Qian. Her company claimed to facilitate investments throughout China, projecting an image of transforming the country into a financial and technological hub.
Victims, including businesspeople and bank employees, were often encouraged by friends to invest, often without sufficient knowledge about Qian, who garnered a reputation as the “goddess of wealth.”
Experts have highlighted that cryptocurrencies are increasingly being exploited by organized crime to conceal and move assets, enabling fraudsters to profit from illegal activity. This case underscores the scale of financial gain available to such scammers.
Will Lynn, leading the Metropolitan Police’s economic and cybercrime unit, remarked that the conviction is the result of years of dedicated collaboration between the police and Chinese authorities. The investigation remains active, with the Crown Prosecution Service working to prevent scammers from benefiting from their ill-gotten gains.
Victims have reportedly begun receiving compensation through a system established in China. Qian is currently in custody, awaiting sentencing, the date of which has yet to be announced. Efforts to reach the Chinese Embassy in the UK for comments were made but have not yet yielded a response.
