The Case Within the 60,000 Bitcoin Incident | Special Feature Selection (AI Translation)
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文｜财新周刊 岳跃
By Yao Yue, Caixin Weekly
文｜财新周刊 岳跃
By Caixin Weekly's Yue Yue
Cover Story Illustration: The Money Laundering Trail of 60,000 Bitcoins from Tianjin to London
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 luxurious house with a monthly rent of £17,000 (approximately 155,000 RMB), driving a Mercedes-Benz, spending tens of thousands of pounds on high-end fashion and shoes at the upscale British department store Harrods, purchasing jewelry in Zurich, buying apartments in Dubai, and continuously acquiring manor-style mansions in the UK...
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- Wen Jian's lavish lifestyle in London raised suspicions leading to the discovery of 61,000 laundered bitcoins connected to a major Ponzi scheme run by Qian Zhimin, who remains at large.
- The UK’s largest cryptocurrency money laundering case linked to Tianjin's 43 billion yuan Ponzi scheme saw 4,500 bitcoins vanish, with ongoing illicit trades on exchanges.
- The case prompted legal cooperation under a 2013 China-UK treaty, with possible asset recovery efforts aiming to return funds to victims in China.
The article titled "The Money Laundering Trail of 60,000 Bitcoins from Tianjin to London" by Yue Yue of Caixin Weekly details the extensive money laundering operation involving Wen Jian and her boss "Huahua" or Qian Zhimin, connecting illegal fundraising activities in China to lavish expenditures in the UK. Wen Jian, formerly a Chinese takeout worker, lived a life of luxury from 2017 to 2018, funded by converting Bitcoin into cash. This lifestyle included expensive homes, designer clothes, and international travel.[para. 1]
Wen Jian's extravagant expenditures caught the attention of British police, who discovered 61,000 Bitcoins, valued at approximately ¥31 billion ($71,200 per unit as of April 1). This identified Wen Jian as a nominee holder for Qian Zhimin, the real owner involved in China's illegal Lantian Gerui electronics fund-raising scam, which defrauded 130,000 victims out of RMB 43 billion across China. Despite Wen's arrest, "Huahua" remains at large.[para. 2][para. 3][para. 4][para. 5]
The British police investigation revealed that Wen Jian converted Bitcoin into cash, funneling money through luxury purchases, including 48 devices and thousands of digital files leading to the discovery of the Bitcoin stash.[para. 6][para. 7][para. 8] Despite her claim of ignorance regarding the illegal origins of the Bitcoins, British prosecutors suspect her active involvement, noting her careful travels to non-extradition countries. Wen Jian is scheduled for sentencing on May 10, 2024.[para. 9][para. 10]
The Tianjin illegal fundraising case involved Lantian Gerui offering high-return fake financial products, targeting elderly investors with schemes promising returns up to 300%. Qian Zhimin, the mastermind, shielded her identity by using proxies like Wen.[para. 11][para. 12][para. 13]
Qian transferred vast amounts of Bitcoin overseas before the Chinese regulatory crackdown on ICOs in 2017, using this wealth to establish a new identity and flee to the UK with a Saint Kitts and Nevis passport.[para. 14] The Chinese government's efforts to recover funds from Qian have challenged legal avenues, including recent international law enforcement cooperation, that remain largely unsuccessful in reclaiming assets.[para. 15][para. 16][para. 17][para. 18]
Moreover, the case involved an intricate system of bribery, to maintain the Ponzi scheme's operation even after initial arrests. Zhang Lie, a police investigator, was bribed by Qian through intermediaries to secure the release of Wu Xiaolong, Lantian Gerui's general manager. Both Zhang and another instigator, Huo Jian, are now serving long prison sentences.[para. 19][para. 20][para. 21][para. 22]
More troubling, part of the seized Bitcoin vanished, with 4,500 Bitcoins disappearing during the five-year investigation. Tracking these funds underscores the challenges in digital currency theft and laundering, complicating recovery further. Cryptocurrencies' transparency allowed partial tracking but recovery remains difficult.[para. 23]
Complicating the asset recovery process, as of January 2024, these Bitcoins were traced to exchanges linked to Chinese beyond China's regulatory reach. Given the difficulties in cross-border financial crime coordination, the likelihood of victims recovering a significant portion of their losses remains slim. Asset sharing treaties and mutual recognition between China and the UK might offer a path but real-world application remains rare.[para. 24][para. 25]
Finally, the article discusses international efforts required to strengthen asset recovery cooperation, with few successful precedents. Caixin concludes with a call for enhanced cross-border legal frameworks to enable more effective asset tracking and recovery in future cases.[para. 26][para. 27][para. 28][para. 29][para. 30]
These points illustrate the sprawling and complex nature of global financial crime and the daunting prospects for justice and restitution for victims caught in its web.
- Bluesky Precision Technology Co., Ltd.
- Bluesky Precision Technology Co., Ltd. is a company that was involved in a large Ponzi scheme in Tianjin, China, known for illegal fundraising. Established in March 2014, the company promoted high-return "investment products" tied to cryptocurrencies like Bitcoin and Deal Coin. The scheme affected around 130,000 victims and involved over 43 billion RMB. Many of its leaders, including key figure Qian Zhimin, have faced legal actions.
- UK Aisheng Insurance
- UK Aisheng Insurance is described as a fictional entity created by Qian Zhimin to promote fraudulent investment schemes. It was supposedly the world's only company providing insurance for digital currencies, with products like "Aisheng Annual Financial Insurance." In reality, it was a shell company registered in the Cayman Islands and lacked any legitimate insurance licenses.
- As early as August 2016：
- Qian Zhimin's top entrepreneurial partner, Wu Xiaolong, was criminally detained by police in Linghai, Liaoning Province, on suspicion of illegal fundraising.
- Fall of 2017：
- Wen Jian starts living an extravagant lifestyle funded by money laundering.
- September 2017：
- Wen Jian saw a job posting for a housekeeper in a London Chinese WeChat group and started working for 'Huahua'.
- September 2017：
- Qian Zhimin arrived in London using the name 'Zhang Yadi' and a passport from Saint Kitts and Nevis.
- December 2017：
- Police in Tianjin, China, announced an investigation into Lantian Gerui.
- Summer of 2018：
- Wen Jian attempted to purchase two luxury mansions in North London for £36 million, triggering anti-money laundering checks.
- October 31, 2018：
- London police conducted a raid on the residence of Wen Jian and 'Huahua'.
- End of 2018：
- The case of Wen Jian's money laundering activities was uncovered.
- August 2020：
- ‘Huahua’ fled the UK.
- By January 2024：
- Stolen Bitcoins involved in the case were still being traded on exchanges related to Chinese individuals.
- April 1, 2024：
- The value of the bitcoins was estimated based on their price ($71,200 per unit).
- April 3, 2024：
- Relevant authorities responded to inquiries regarding the treaty with the UK.
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