610,000 Bitcoin Laundering Case Compensation Plan Faces Scrutiny as Chinese Victims Launch Legal Challenge in UK

Odaily Planet Daily reports that victims of Chinese investment fraud are challenging a compensation arrangement involving approximately 61,000 Bitcoins in a UK court. The victims’ representatives have filed an application with the High Court of England and Wales to reject the proposed compensation scheme through the Chinese restitution mechanism, arguing that the scheme could allow UK authorities to retain significant asset appreciation gains. These Bitcoins were seized by UK police during a money laundering investigation in London and are currently valued at about £3.2 billion (approximately $4.3 billion). According to reports, the law firm Candey has filed objections on behalf of around 5,700 victims, stating that the current compensation plan cannot ensure fair restitution. The scam was led by Qian Zhimin and involved over 128,000 Chinese investors, with the proceeds converted into Bitcoin and transferred overseas between 2014 and 2017. UK prosecutors have indicated that some claims may result in a few victims and litigation funders receiving compensation exceeding their actual losses. (FT)