UK officials are assessing whether to retain approximately $6.4 billion in gains from Bitcoin linked to a major fraud case that occurred in China. This consideration comes despite the stolen 61,000 Bitcoins being valued at nearly $7.24 billion currently.

According to a report by the Financial Times, the UK’s High Court may only return the original investment value of about 640 million British pounds ($862 million) to the victims instead of the assets’ current worth.

This Bitcoin, seized in 2018 from scammers in north London, was associated with a scheme that defrauded 128,000 investors in China. Some government officials have discussed whether utilizing these funds could assist in mitigating a budget deficit estimated at 30 billion pounds ($40.5 billion).

Typically under existing rules, assets confiscated under the Proceeds of Crime Act are channeled into the Home Office or the Treasury Consolidated Fund, facilitating court-ordered compensation as necessary. Meanwhile, the Treasury has been advised against considering these funds in its financial forecasts, raising concerns among officials regarding the potential for prolonged legal disputes.

Key Facts of the Seizure

The primary individuals implicated are Zhimin Qian and her assistant Seng Hok Ling, both of whom have admitted guilt. Authorities claim this marks the largest cryptocurrency seizure to date, following an extensive investigation by the London Metropolitan Police into international money laundering.

In her fraudulent activities from 2014 to 2017, Qian deceived thousands and stored the assets as Bitcoin after emigrating from China with forged documents.

The police tracked her down following an attempted money laundering operation in 2018, resulting in her arrest alongside Ling in April 2024, which led to the seizure of various assets, including cryptocurrency.