Victims of a large Chinese investment fraud are challenging a UK proposal to compensate them via a Chinese scheme, arguing it could leave British authorities with much of the value from roughly 61,000 seized Bitcoin. The dispute, now in the UK High Court, involves a cryptocurrency haul worth about $4.3 billion, which has appreciated significantly since its confiscation. Law firm Candey, representing thousands of victims, says the arrangement may not guarantee fair restitution for the over 128,000 investors affected.
Victims of a Chinese investment fraud are contesting a United Kingdom proposal to compensate them through a Chinese redress scheme. They argue the plan could leave British authorities holding much of the upside from roughly 61,000 Bitcoin seized in a money-laundering investigation.
The dispute has moved into the UK High Court as groups representing victims seek to recover the funds. The Bitcoin haul is now worth about $4.3 billion after rising sharply in value since the assets were confiscated.
Law firm Candey, which represents about 5,700 victims, said the proposed compensation arrangement may not guarantee fair restitution. The fraud scheme itself reportedly affected more than 128,000 investors in China.
Prosecutors reportedly argued that some of the legal claims could allow a subset of victims and litigation funders to recover sums exceeding their actual losses. Martin Evans KC, representing the Director of Public Prosecutions, said in court submissions that the claims risk benefiting “a small subset of victims and their litigation funders” while excluding others.
Candey defended the legal action, saying court proceedings give victims the best chance of securing proper compensation. The firm noted its legal fees are capped at 18% of any recovered funds.
British authorities seized the Bitcoin during a 2018 raid on a London property linked to Jian Wen and scheme mastermind Zhimin Qian. Qian was sentenced by a UK court to over 11 years in prison in November 2025.
Wen attracted attention after attempting to buy a luxury London mansion using Bitcoin. She failed to explain the origin of the funds.
A preliminary hearing is scheduled for July to determine whether English or Chinese law should govern the claims. The High Court has also set a May 22 deadline for claimants seeking recovery under a specific legal section.
