Investigation: How Was Over 40 Billion Yuan in Illegal Funds Laundered into Bitcoin and Transferred to London?(AI Translation)
Listen to the full version
文｜财新周刊 岳跃
By Caixin Weekly's Yue Yue
住着每月租金1.7万英镑（约合15.5万元人民币）的豪宅，开着奔驰豪车，在英国高端商场哈罗德百货（Harrods）花数万英镑狂买大牌时装和鞋子，在苏黎世买珠宝，在迪拜买公寓，在英国连续购置庄园式豪宅⋯⋯
Living in a luxury mansion with a monthly rent of £17,000 (approximately 155,000 RMB), driving a Mercedes-Benz luxury car, spending tens of thousands of pounds on high-end fashion and shoes at Harrods department store in the UK, buying jewelry in Zurich, purchasing apartments in Dubai, and acquiring manor-style mansions consecutively in the UK...
这些挥金如土的生活，是一名现年43岁的南伦敦原中餐外卖店打工者温俭（Wen Jian）在2017年秋天到2018年案发前的奇遇。直到2018年夏天，当温俭想用3600万英镑（约合3.28亿元人民币）购置两套北伦敦的豪宅时，引发反洗钱审查，诸多疑点引起英国警方的注意，最终锁定6.1万枚比特币；按4月1日比特币7.12万美元一枚的价格计算，市值约310亿元人民币。
These extravagant lifestyles were the adventures of Wen Jian, a 43-year-old former Chinese takeaway worker from South London, from the autumn of 2017 until his arrest in 2018. It wasn't until the summer of 2018, when Wen Jian attempted to purchase two luxury homes in North London with £36 million (approximately 328 million RMB), that he triggered anti-money laundering reviews. Numerous suspicions caught the attention of the British police, eventually leading to the discovery of 61,000 Bitcoins. Valued at $71,200 per Bitcoin as of April 1st, their market value was approximately 31 billion RMB.
这是英国到目前为止查处的最大规模加密货币洗钱案。经过五年的调查，伦敦警方终于摸清这些资金的来龙去脉，温俭将于近期以洗钱罪被定罪。然而，温俭只是这些比特币的“代持者”，真正的所有者、她所谓的“老板”——“花花”或“花姐”，已从英国逃走，目前不知所终。
This case marks the largest cryptocurrency money laundering operation ever prosecuted in the UK. After a five-year investigation, London police have finally traced the origins and destinations of these funds, leading to Wen Jian's imminent conviction on money laundering charges. However, Wen Jian was merely a "nominal holder" of these bitcoins. The real owner, her so-called "boss"—known as "Hua Hua" or "Sister Hua"—has fled the UK and her current whereabouts are unknown.
- DIGEST HUB
Digest Hub
Back
- Wen Jian, a former worker at a Chinese takeaway in South London, lived a lavish lifestyle funded by cryptocurrency laundering involving 61,000 bitcoins worth approximately 310 billion yuan. The extravagant spending led to an investigation by UK authorities, uncovering the largest crypto money laundering case in the country linked to a Ponzi scheme in Tianjin, China.
- The real owner of the bitcoins, Qian Zhi Min, is the fugitive mastermind behind the Tianjin-based Blue Sky Gory Electronic Technology Company's illegal fundraising case that defrauded nearly 130,000 victims of over 43 billion yuan. Despite being caught and investigated for money laundering, Wen Jian claimed to be unaware of the illicit origins of the funds.
- Before UK police could seize all involved assets, 4,500 bitcoins disappeared from digital wallets under investigation. These missing bitcoins continued to be traded as late as January 2024 on exchanges related to Chinese individuals. The possibility of recovering and returning part of these seized assets to Chinese victims remains uncertain due to international legal complexities and jurisdictional challenges.
The article from Caixin Weekly, authored by Yue Yue, delves into the intricate web of illegal activities surrounding Wen Jian, a 43-year-old former Chinese takeaway worker in South London, and her involvement in the UK's largest cryptocurrency money laundering case. Wen Jian lived a life of luxury funded by illicit gains, including living in a mansion with a monthly rent of £17,000, driving high-end vehicles, and making extravagant purchases across Europe. Her lavish lifestyle came under scrutiny when she attempted to buy two luxury homes in North London for £36 million in 2018, triggering an anti-money laundering investigation that led to the discovery of 61,000 Bitcoins valued at approximately 31 billion RMB [para. 1].
Wen Jian was found to be a nominal holder of these Bitcoins for "Hua Hua" or Qian Zhimin, who is identified as the fugitive mastermind behind a major illegal fundraising case involving Blue Sky Grit Electronic Technology Co., Ltd. This scheme affected nearly 130,000 victims across China with illegal deposits amounting to over 43 billion yuan [para. 2]. Despite being arrested and facing imminent conviction on money laundering charges in the UK, Wen Jian claimed ignorance about the illicit origin of the funds [para. 3].
The narrative further explores Qian Zhimin's operations through Lantian Gerui (also known as Blue Sky Grit), which promised investors high returns through financial products linked to cryptocurrencies like Bitcoin and Dogecoin. The company operated as a Ponzi scheme under the guise of various investment opportunities but was essentially funneling new investors' money to pay off earlier ones [para. 4][para. 5]. The operation continued even after Chinese authorities declared ICOs illegal and cracked down on cryptocurrency trading and mining activities within China [para. 6].
In addition to detailing Qian Zhimin's fraudulent activities and their impact on thousands of investors across China, the article highlights efforts by Chinese authorities to recover assets and potentially refund victims. However, challenges remain due to international legal complexities and the need for cooperation between China and the UK under existing treaties on criminal judicial assistance [para. 7][para. 8].
The case also sheds light on broader issues related to cryptocurrency regulation, cross-border law enforcement cooperation against financial crimes, and asset recovery efforts following large-scale fraud cases. It underscores the difficulties faced by victims seeking restitution and raises questions about how seized criminal assets should be handled internationally [para. 9][para. 10].
This comprehensive report not only exposes a significant financial crime but also illustrates the global challenges posed by cryptocurrency-related frauds and emphasizes the importance of international collaboration in addressing such complex issues [para. 11].
- Blue Sky Grit Electronic Technology Co., Ltd.
蓝天格锐电子科技有限公司 - Summary： Blue Sky Grit Electronic Technology Co., Ltd. (referred to as "Blue Sky Grit") was established in March 2014 in Tianjin, China. Operating under the guise of an electronics technology company, it launched several so-called "zero-risk, high-return" financial products such as "Blue Sky No.1," "Blue Sky No.2," and "Youli Youbi." These products were promoted through conferences and a pyramid scheme-like model that involved recruiting new investors with promises of high interest rates.The investment periods for these products ranged from six months to two and a half years, with minimum investments varying from 6,000 yuan to 60,000 yuan without an upper limit. Investors were promised returns ranging from 100% to 300%. For example, one of Blue Sky Grit's products claimed that an investment of 100,000 yuan on a 30-month contract would yield daily returns starting from the third day after signing the contract, doubling after six months and allowing investors to recoup their initial investment in just over a year.Qian Zhimin was identified as the mastermind behind Blue Sky Grit and was known by nicknames such as "Hua Hua" or "Sister Hua." She remained hidden behind various front figures like Wen Jian and did not appear in any company registration documents or public events. Qian Zhimin orchestrated the company's operations from behind the scenes and was responsible for creating its fraudulent financial products.The company's operations expanded across China into seven regions including Changchun, Shenzhen, Xi'an, Zhengzhou, Chengdu, Tianjin, and Wuxi. Despite its widespread activities and claims of substantial technological infrastructure like "Bitcoin supercomputing centers," Blue Sky Grit's offerings were essentially part of a Ponzi scheme that used new investors' money to pay earlier investors.In addition to Bitcoin investments, Blue Sky Grit also introduced its own virtual currency called Deal Coin (DTC), which it falsely marketed as being based on SHA256 algorithm with a total supply of 6.3 billion coins.By summer 2017, when ICOs (Initial Coin Offerings) became rampant in China leading to regulatory crackdowns on illegal financial activities involving cryptocurrencies, Qian Zhimin had already prepared her escape by obtaining investment immigration status and fleeing overseas.The case against Blue Sky Grit eventually led to legal action by Chinese authorities who announced an investigation into the company for illegal fundraising in December 2017. The case involved more than 430 billion yuan (~
- UK Aisheng Insurance
英国爱生保险 - Summary： UK Aisheng Insurance, as mentioned in the article, is a shell company registered in the Cayman Islands in March 2017. It does not possess any type of insurance license. The company was involved in the operations of Blue Sky Gory Electronic Technology Co., Ltd. (referred to as "Blue Sky Gory"), which was implicated in a major illegal fundraising case in Tianjin, China. Blue Sky Gory falsely claimed that UK Aisheng Insurance was the only company globally providing insurance for digital currencies, promoting it as part of their high-return, zero-risk financial products related to cryptocurrencies like Bitcoin and Deal Coin (DTC). This claim was part of a Ponzi scheme that promised investors unrealistically high returns on investments linked to virtual currencies and other projects without actual backing or legitimate business operations.
- 2014：
- Qian Zhimin establishes Lantian Gerui in Tianjin.
- 2016：
- Wu Xiaolong, general manager of Lantian Gerui, is detained for suspected illegal fundraising.
- 2017：
- Qian Zhimin arrives in London and begins transferring assets abroad. Chinese authorities announce investigation into Lantian Gerui.
- 2018：
- London police initiate investigation into Wen Jian and seize 61,000 bitcoins.
- 2021：
- London police begin tracking and seizing bitcoins involved in the case.
- 2024：
- Hearing scheduled to decide how to handle the confiscated bitcoins.
- PODCAST
- MOST POPULAR
Sign in with Google
Sign in with Facebook
Sign in with 财新