Author: Reporter Wang Lina from "Finance"
Editor: Su Qi
On May 22, local time in the UK, Qian Zhimin appeared in a court in London and is expected to stand trial in the UK on October 21, 2024. Qian Zhimin is the main suspect in a case of illegal fundraising in China, involving an amount of over 40.2 billion yuan.
Traveling in the UK and Europe, Qian Zhimin transformed into Yadi Zhang, holding a passport from the Federation of Saint Kitts and Nevis under the name of Yadi Zhang. However, this new identity did not allow Qian Zhimin to escape.
Yadi Zhang is just one of Qian Zhimin's many identities. According to a reporter from "Finance," this 46-year-old woman who claimed to have been injured in a car accident around 2015 has multiple identities: in the UK, Qian Zhimin claimed to have been engaged in global jewelry trade for over 20 years. Under the name Nan Yin, Qian Zhimin obtained a fake Burmese passport. In China, Qian Zhimin was the actual controller of Tianjin Lantian Ge Rui Electronic Technology Co., Ltd. (referred to as "Lantian Ge Rui"), the company involved in the aforementioned illegal fundraising case. Her real name was hidden, and she presented herself as "Hua Hua" or "Hua Jie" in China, and her nickname in the UK became "Rose," among others. To conceal her face, Qian Zhimin wore a pink veil and a masquerade mask when meeting with investors, where she talked extensively about investment and finance, virtual currency, and portrayed Lantian Ge Rui as a company at the forefront of technology and investment, conveying to investors that the dream of wealth was within reach, saying "Ge Rui will bring you wealth for three lifetimes."
After the Lantian Ge Rui scandal, Qian Zhimin disappeared. According to the Chinese judiciary, the amount involved in the illegal fundraising case of Lantian Ge Rui was 40.2 billion yuan, and several of Qian Zhimin's accomplices were sentenced. Qian Zhimin, on the other hand, hid in a luxury mansion in the UK with a monthly rent of 17,000 pounds.
When the Chinese police issued a red notice for Qian Zhimin and launched a global manhunt, Qian Zhimin took another risk—attempting to convert Bitcoin into cash and trying to transfer the Bitcoin proceeds into bank accounts for purchasing high-value properties in the UK and other places. This process was carried out by Jian Wen, who acted as the "front desk" or assistant and was a former employee of a Chinese takeout restaurant.
When purchasing a house in the UK, the inability to explain the true source of the funds raised the attention of the London police. During the search of the residence shared by Jian Wen and Qian Zhimin, among other places, the London police found multiple electronic devices. Through investigation and tracking, multiple digital wallets were discovered, leading to the seizure of over 61,000 Bitcoins. At the end of May 2024, the price of one Bitcoin surpassed 70,000 USD, and based on this calculation, the value of the seized Bitcoins exceeded 3 billion pounds.
On May 24, local time in the UK, Jian Wen was sentenced to 80 months in prison by a British court for involvement in money laundering. Jian Wen's sentence mentioned a large-scale investment fraud in China from 2014 to 2017, involving an amount exceeding 40 billion yuan and 128,000 investors. Some of the proceeds from this investment fraud were converted into Bitcoin, stored in cryptocurrency wallets, and smuggled out of China using laptops.
When Jian Wen was arrested, Qian Zhimin disappeared once again but has recently been apprehended. According to media reports, Qian Zhimin returned to London in April this year and was detained, accused of acquiring, using, or possessing cryptocurrency in London and other parts of the UK. She is currently charged with two counts of illegal possession of cryptocurrency.
On May 16, 2024, the Hedong Branch of the Tianjin Public Security Bureau issued a notice stating that through continuous international law enforcement cooperation channels, they have been collaborating with law enforcement agencies in the UK and other countries to carry out international fugitive repatriation and asset recovery.
"Did she really buy Bitcoin for us?"
"That's Qian Zhimin!" In March 2024, Xu Jing (pseudonym) made this assertion upon noticing Yadi Zhang's portrait in the Jian Wen case report. Xu Jing had previously invested in financial products of Lantian Ge Rui, but the investment funds were not returned. After Lantian Ge Rui's scandal, she and some investors only learned of the true identity of "Hua Hua" when communicating with relevant departments.
Retired Xu Jing had invested in 7 financial products of Lantian Ge Rui, some of which were related to Bitcoin. Lantian Ge Rui was established in March 2014, with its publicly stated business scope being the development of electronic products, network technology product development, and consulting services, without the qualification to sell financial products. However, the company designed 10 financial products.
Since the mysterious emergence of Bitcoin in 2009, due to its decentralized, anonymous, and scarce characteristics, as well as its ability to facilitate low-cost and rapid cross-border payments, it has become a disruptive digital currency. In the year before Lantian Ge Rui was established, in 2013, Bitcoin came into the view of more Chinese people, and at the end of 2013, Chinese buyers once drove up the price of Bitcoin. The price of Bitcoin surged from a few hundred dollars to over 1,000 dollars that year.
In December 2013, to prevent money laundering risks and maintain financial stability, the People's Bank of China and other departments issued a notice on preventing Bitcoin risks, explicitly stating that Bitcoin is not a true currency and should not be circulated in the market as legal tender. It also specified that financial institutions and payment institutions should not price products or services in Bitcoin, underwrite insurance business related to Bitcoin, or include Bitcoin in the scope of insurance liability.
After Lantian Ge Rui was established, it quickly jumped on the bandwagon of virtual currencies such as Bitcoin. Lantian Ge Rui's British Aisheng Insurance Digital No. 1 (referred to as "Digital Insurance No. 1") had a unit price of three Bitcoins, totaling 24,000 yuan, and within the two-year subscription period, it received a daily return of 0.3‰ of the subscription amount. After two years, the fund received 24,000 yuan in returns, and upon expiration, it also received a value asset package worth 36,000 yuan, which could be immediately cashed out for Bitcoin, MultiBit, and other virtual digital currencies. When promoting this product, it was claimed that the potential for appreciation of digital currencies was enormous, and professional stewardship and social collaboration were particularly important. British Aisheng Insurance Co., Ltd. was the only insurance company in the world to provide property insurance for digital currencies, with its address in the British Virgin Islands. Xu Jing purchased ten units, meaning she subscribed to 30 Bitcoins.
Zheng Jian (pseudonym) and his wife in Chongqing also purchased Digital Insurance No. 1, subscribing to over 10 Bitcoins. Zheng Jian stated to "Finance" that at the time, Qian Zhimin and her subordinates claimed that older investors were not familiar with Bitcoin operations and assured that by placing Bitcoin under Lantian Ge Rui, high returns were guaranteed.
The 59-year-old Zheng Jian stated that he and his wife began investing in Lantian Ge Rui products in 2016 based on a recommendation from a classmate. The products of Lantian Ge Rui closely followed investment hotspots. For example, Lantian Ge Rui claimed to have independently developed the first intelligent wearable device "Life Ring," which had a supercomputer for Bitcoin mining, and the legal representative of the company was rated as the most honest entrepreneur, which led Zheng Jian and many middle-aged and elderly investors to believe in the extraordinary strength of the company. To attract investors, Lantian Ge Rui organized meetings and inspections, and also promoted the slogan "Give Ge Rui three years, and Ge Rui will give you wealth for three lifetimes."
It is understood that Lantian Ge Rui also organized a few investors to visit and tour in the UK, claiming to have a branch of Lantian Ge Rui registered in the UK.
After the initial returns from the financial products were received, Zheng Jian and his wife gradually became involved in multiple investment products of Lantian Ge Rui. For example, in the Bitcoin project, a policy worth 24,000 yuan received a daily increase of 0.3‰, resulting in a daily dividend of 72 yuan for Zheng Jian. As a result, Zheng Jian and his wife gradually increased their investments, some of which were borrowed funds.
In Tianjin, Li Min (pseudonym) also experienced the pain of investing in Lantian Ge Rui. In 2015, while arranging to buy a house, Li Min had a sum of money on hand but succumbed to the persuasion of classmates and began investing in Lantian Ge Rui's products. Li Min admitted that at the time, in her 50s, with children in need of money, she hoped that investing could "take a chance" and "earn some money."
Li Min purchased 4 financial products, with over 10 units related to Bitcoin, and the salesperson persuaded her with a "buy 5, get 1 free" offer. Li Min purchased 5 units twice, spending a total of 240,000 yuan, meaning she subscribed to over 30 Bitcoins. On May 21, 2024, the price of Bitcoin surpassed 70,000 USD (about 500,000 yuan) for the first time.
In the spring of 2017, Li Min went to Jiangsu Province to attend a promotional event for Lantian Ge Rui. She recalled that it was the only time she saw "Hua Hua," who was slightly plump and wore a yellow masquerade mask while speaking on stage, mentioning that the Bitcoins purchased by Lantian Ge Rui had been sold in part and were profitable, and assured investors to rest assured, as the subsequent purchases would also appreciate.
After the Lantian Ge Rui scandal, the dreams of wealth for the investors were shattered. Zheng Jian, who claimed to have lost hundreds of thousands of yuan, looked back at the financial predicament of seven or eight years before and after the scandal, and the gradually emerging truth about Lantian Ge Rui, feeling as if it were "like a dream."
Many of those drawn into the investment black hole of Lantian Ge Rui were elderly people. Wang Chen (pseudonym) was unaware of the specific amount of investment made by his parents-in-law in Lantian Ge Rui for a long time. Wang Chen stated that after his parents-in-law suffered investment losses, they began to gradually reveal some information from 2023, which was the loss of savings for two generations in the family, but the elderly people believed in some rumors and were even afraid to report to the police.
Wang Chen stated that the elderly people in her family had visited Lantian Ge Rui's "mining farm" in person, where the on-site equipment was well-organized and claimed to be supercomputers capable of mining coins quickly. Due to the large investment amount, the elderly people had the opportunity to meet "Hua Hua," who claimed to be a Ph.D. from a prestigious university with extensive experience in financial risk management, and spoke confidently about the company's future and prospects.
In recent days, Wang Chen has been organizing relevant information and seeking ways to assert their damaged rights. She asked the reporter from "Finance," "Did she (Qian Zhimin) really buy Bitcoin for us?"
The Crazy Fundraising Past
The good times did not last long. In July 2017, Zheng Jian and others found that the returns were no longer being received, and Lantian Ge Rui used the excuse that relevant departments were rectifying the situation and stopped the refunds. In fact, on April 21, 2017, the Hedong Branch of the Tianjin Public Security Bureau initiated an investigation into the suspected illegal fundraising case of Lantian Ge Rui.
However, the platform of Lantian Ge Rui, like a giant ship, did not immediately "brake" its multi-level sales. According to relevant judicial judgments related to Lantian Ge Rui, in April 2017, in Huaxian County, Henan Province, a defendant established a Bitcoin community while developing investors and continued to organize product promotion meetings in May and June of the same year, promoting Lantian Ge Rui's "Carnival," "Digital Insurance No. 1," "Digital Insurance No. 2," "Smart Investment," "Life Ring Investment," and other entrusted financial products, sharing investment income experiences, and promoting promises of zero risk and high returns.
In June 2019, the Hedong Branch of the Tianjin Public Security Bureau reported that since the initiation of the investigation into the suspected illegal fundraising case of Lantian Ge Rui, the public security organs have intensified their efforts to organize and carry out the investigation and resolution of the case, and as of now, a total of 50 criminal suspects, including the legal representative of the company, Ren Jiangtao, have been arrested, with 28 of them already being transferred for examination and prosecution.
Since 2019, the individuals involved in the Lantian Ge Rui case have been sentenced one after another. Judicial authorities have determined that Lantian Ge Rui was registered in the name of Qian Zhimin and in June 2014, Qian Zhimin changed the legal representative of the company to Ren Jiangtao. Lantian Ge Rui was actually controlled by Qian Zhimin and did not have the qualifications of a banking and financial institution.
Multiple judicial documents related to the Lantian Ge Rui series of cases have determined that Qian Zhimin recruited Ren Jiangtao and others to launch ten financial products under the name of Lantian Ge Rui, such as "Lantian No. 1," "Lantian No. 2," "Profit with Coins," "Life Ring Customer Service Center Investment Plan," and "Smart Service System Investment Plan," using promises of principal and interest repayment and high returns as bait, openly promoting them to the public through financial product promotion meetings, distribution of promotional materials, and word-of-mouth among investors, and signing investment agreements with the general public to raise funds.
It is reported that Lantian Ge Rui's financial products included Life Ring, anti-smog purifiers, purifiers, and Bitcoin, among others. The numerous products were only meant to attract more customers. For example, in the case of Life Ring, a witness mentioned in the already adjudicated Lantian Ge Rui mastermind case that Lantian Ge Rui had established over 200 Life Ring stores nationwide, with almost every customer center losing nearly 7 million yuan per month. Despite the losses, they continued to expand the stores, ultimately to sell financial products.
Several of Lantian Ge Rui's products contained virtual currencies such as Bitcoin. For example, the "Digital No. 2" project required an investment of 38,000 yuan per unit, with a daily appreciation of 110 yuan, a contract period of 24 months, and a gift of a 38,000 yuan digital asset package upon expiration, including Bitcoin, MultiBit, and Litecoin. The promotional materials claimed "a total return of about 96,000 yuan over two years!"
As determined by the judiciary, from April 2014 to August 2017, a total of over 40.228 billion yuan was illegally raised, all of which was controlled and disposed of by Qian Zhimin. Of this amount, over 34.118 billion yuan was used to refund over 128,000 participating investors, over 336.7 million yuan was used for the company's daily expenses and project operations, and the remaining funds were used for the purchase of real estate, jewelry, automobiles, and other purposes. After the case was exposed, the public security organs made every effort to recover the funds, and in accordance with the law, froze and seized a batch of assets involved in the case, including funds, real estate, vehicles, and other assets, freezing 1.8 billion yuan in funds, seizing over 500 million yuan in cash, seizing jewelry, gold bars, motor vehicles, and sealing related real estate.
In September 2021, Ren Jiangtao, the legal representative of Lantian Ge Rui, was sentenced to 10 years in prison for the crime of illegally absorbing public deposits. After the case was exposed, Ren Jiangtao stated that he had met Qian Zhimin and became romantically involved with her in April 2014. In February 2017, Qian Zhimin asked Ren Jiangtao to help her cross the border, and with Ren Jiangtao's assistance, Qian Zhimin fled the country.
The judicial documents related to the Jian Wen case in the UK show that after leaving China, Qian Zhimin obtained a fake Burmese passport under the name Nan Yin. On September 16, 2017, when Qian Zhimin entered the UK, she held a passport from the Federation of Saint Kitts and Nevis under the name of Yadi Zhang, who had just become a citizen of the Federation on June 17, 2017. The passport holder enjoys visa-free or visa-on-arrival treatment in over 150 countries and regions, and can obtain citizenship by investing at least 150,000 USD.
Ren Jiangtao and his girlfriend, who also worked at Lantian Ge Rui, attempted to flee as well. On November 1, 2017, Ren Jiangtao and his girlfriend were arrested and returned to China in Vientiane, Laos. A source close to Ren Jiangtao and his girlfriend told the reporter from "Finance" that the two had claimed that the company arranged for them to travel abroad.
In his confession, Ren Jiangtao mentioned that Qian Zhimin had arranged for the company to engage in "mining" operations. Ren Jiangtao was responsible for maintaining the "mining farm" and mining machines. Initially, the mining machines in the "mining farm" mined Bitcoin, and later, when the machines became outdated, they mined another type of virtual currency, MultiBit. The virtual currency mined was irregularly transferred to Qian Zhimin.
Another individual who managed the "mining farm" confirmed that in June 2014, a factory in Nansha District, Guangzhou, had about 1,000 mining machines installed. After being tested, the machines began operating in July and continued until March 2015, when they were taken away by people sent by Ren Jiangtao. Shortly after, another batch of old mining machines was brought in, but these machines were never used. There was also a Lantian Ge Rui mining farm in Beichen District, Tianjin. They all stated that they were not sure how much Bitcoin was mined.
According to the audit of the Lantian Ge Rui non-fundraising case, 1.14 billion yuan was used to purchase Bitcoin. The reporter from "Finance" checked the publicly available Bitcoin trading prices and found that from April 2014 to July 2017, the price of one Bitcoin fluctuated between 310 USD and 3,000 USD. Additionally, according to the reporter from "Finance," the 61,000 Bitcoins seized in the UK, a small portion was obtained through mining, and the majority was obtained through exchanges.
The Mysterious Cross-Border Adventure of "Hua Hua"
After the Lantian Ge Rui case was exposed, "Hua Hua" Qian Zhimin fled.
Qian Zhimin had made arrangements before fleeing. According to relevant Chinese judicial documents, Qian Zhimin had been in a romantic relationship with Zhao Linfeng since April 2014. In February 2017, Qian Zhimin asked Zhao Linfeng to help her cross the border, and with Zhao Linfeng's assistance, Qian Zhimin fled the country.
The UK judicial documents related to the Jian Wen case show that after leaving China, Qian Zhimin obtained a fake Burmese passport under the name Nan Yin. On September 16, 2017, when Qian Zhimin entered the UK, she held a passport from the Federation of Saint Kitts and Nevis under the name of Yadi Zhang, who had just become a citizen of the Federation on June 17, 2017. The passport holder enjoys visa-free or visa-on-arrival treatment in over 150 countries and regions, and can obtain citizenship by investing at least 150,000 USD.
Ren Jiangtao and his girlfriend, who also worked at Lantian Ge Rui, attempted to flee as well. On November 1, 2017, Ren Jiangtao and his girlfriend were arrested and returned to China in Vientiane, Laos. A source close to Ren Jiangtao and his girlfriend told the reporter from "Finance" that the two had claimed that the company arranged for them to travel abroad.
In his confession, Ren Jiangtao mentioned that Qian Zhimin had arranged for the company to engage in "mining" operations. Ren Jiangtao was responsible for maintaining the "mining farm" and mining machines. Initially, the mining machines in the "mining farm" mined Bitcoin, and later, when the machines became outdated, they mined another type of virtual currency, MultiBit. The virtual currency mined was irregularly transferred to Qian Zhimin.
Another individual who managed the "mining farm" confirmed that in June 2014, a factory in Nansha District, Guangzhou, had about 1,000 mining machines installed. After being tested, the machines began operating in July and continued until March 2015, when they were taken away by people sent by Ren Jiangtao. Shortly after, another batch of old mining machines was brought in, but these machines were never used. There was also a Lantian Ge Rui mining farm in Beichen District, Tianjin. They all stated that they were not sure how much Bitcoin was mined.
According to the audit of the Lantian Ge Rui non-fundraising case, 1.14 billion yuan was used to purchase Bitcoin. The reporter from "Finance" checked the publicly available Bitcoin trading prices and found that from April 2014 to July 2017, the price of one Bitcoin fluctuated between 310 USD and 3,000 USD. Additionally, according to the reporter from "Finance," the 61,000 Bitcoins seized in the UK, a small portion was obtained through mining, and the majority was obtained through exchanges.
The Mysterious Cross-Border Adventure of "Hua Hua"
After the Lantian Ge Rui case was exposed, "Hua Hua" Qian Zhimin fled.
Qian Zhimin had made arrangements before fleeing. According to relevant Chinese judicial documents, Qian Zhimin had been in a romantic relationship with Zhao Linfeng since April 2014. In February 2017, Qian Zhimin asked Zhao Linfeng to help her cross the border, and with Zhao Linfeng's assistance, Qian Zhimin fled the country.
The UK judicial documents related to the Jian Wen case show that after leaving China, Qian Zhimin obtained a fake Burmese passport under the name Nan Yin. On September 16, 2017, when Qian Zhimin entered the UK, she held a passport from the Federation of Saint Kitts and Nevis under the name of Yadi Zhang, who had just become a citizen of the Federation on June 17, 2017. The passport holder enjoys visa-free or visa-on-arrival treatment in over 150 countries and regions, and can obtain citizenship by investing at least 150,000 USD.
Ren Jiangtao and his girlfriend, who also worked at Lantian Ge Rui, attempted to flee as well. On November 1, 2017, Ren Jiangtao and his girlfriend were arrested and returned to China in Vientiane, Laos. A source close to Ren Jiangtao and his girlfriend told the reporter from "Finance" that the two had claimed that the company arranged for them to travel abroad.
Ren Jiangtao also mentioned in his testimony that when "Hua Hua" appointed him as the legal representative, she also stated that if the company encountered any problems and needed him to take the blame, she would find a way to "rescue" him.
In 2016, Qian Zhimin was said to have "rescued" Wu Xiaolong, the former general manager of Lantian Ge Rui. According to relevant judicial documents, in August 2016, Wu Xiaolong, the former general manager of Lantian Ge Rui, and others were taken away for investigation by relevant departments in Linghai City, Liaoning Province, on suspicion of illegally absorbing public deposits. Fan, an employee of Lantian Ge Rui, sought the help of Huo Jian, the deputy secretary and deputy manager of the Linghai City Water Company, and promised to give him a huge bribe. Huo Jian then repeatedly asked Zhang Lie, the deputy team leader of the Economic Investigation Brigade of the Linghai Public Security Bureau, for help. Subsequently, Wu Xiaolong was released on bail pending trial. In this incident, Huo Jian received over 6.69 million yuan in bribes, and Zhang Lie received over 8.3 million yuan in bribes. In April 2023, Huo Jian and Zhang Lie were sentenced. After the Lantian Ge Rui case was exposed in 2017, Wu Xiaolong was arrested again for illegally absorbing public deposits and was sentenced in November 2022.
At Lantian Ge Rui, "Hua Hua" created a low-key and mysterious image. Many of Lantian Ge Rui's management personnel stated that they did not know the true identity of "Hua Hua," and some mentioned that "the chairman's superior is a woman named Hua Hua."
Several investors told the "Finance" reporter that after "Hua Hua" fled, many investors gradually learned the real identity of Hua Hua. "Hua Hua" is actually Qian Zhimin, a 46-year-old woman from Jiangsu, with a humble background. Previously, at the promotional events where "Hua Hua" appeared, she wore a mask and investors were not allowed to bring their phones inside, and had to pass through security checks. "Hua Hua" claimed to be a graduate of a prestigious university, with two Ph.D. degrees, and knowledge of financial risk control. Some people also mentioned that when "Hua Hua" lectured on investment and finance, she was very eloquent and made the listeners "passionate." The business partners of Lantian Ge Rui stated that "Hua Hua" was very mysterious, frequently changed her WeChat, and was always unreachable.
After "Hua Hua" fled, she entered the UK on September 16, 2017, and assumed the identity of Yadi Zhang, born in 1990. Within a week of arriving in the UK, she made contact with Jian Wen, who had previously worked in a Chinese takeout restaurant.
Jian Wen, 42, originally from China, moved to the UK with her British husband and lived in various rented accommodations in Leeds, the third-largest city in the UK, from 2011 to August 2017 after their divorce. In May 2017, Jian Wen was also looking for job opportunities in Leeds and a town in South Yorkshire. In the summer of 2017, Jian Wen moved to London and initially lived in the basement of a restaurant. Soon, Jian Wen's fortunes changed.
Jian Wen and Yadi Zhang, who was actually Qian Zhimin, how they made contact or met for the first time is unknown. According to the materials related to Jian Wen's case, on September 21, 2017, Jian Wen, acting as "Hua Hua's" personal assistant, sent an email seeking accommodation and stated that the tenants included Hua Hua, her boyfriend, and herself. Jian Wen introduced "Hua Hua" as a successful jeweler engaged in diamond and antique trading, with business operations in Japan, Thailand, and China, and was hoping to expand her business in the UK and Switzerland. Hua Hua's boyfriend might not come over due to other business arrangements.
In October 2017, Jian Wen and "Hua Hua" moved into a luxury mansion in Hampstead, northwest London, worth nearly 5 million pounds (about 40 million yuan), with six bedrooms, and a monthly rent of over 17,000 pounds. The lease agreement indicated that Jian Wen and "Hua Hua" were joint tenants.
A year later, on October 31, 2018, the mansion in Hampstead where Jian Wen and "Hua Hua" lived was searched by the London police for the first time. This was because Jian Wen attempted to use Bitcoin to purchase a property worth tens of millions of pounds and could not prove the source of the Bitcoin, triggering a money laundering investigation by the London police. When the police raided the mansion, "Hua Hua" was lying in a bedroom upstairs. Jian Wen explained to the officers that "Hua Hua" had injured her leg in an accident and could not come downstairs, and she was "Hua Hua's" caregiver and translator.
In August 2020, the UK police searched the mansion in Hampstead again. This time, Qian Zhimin was not present and her whereabouts were unknown.
Bitcoin Money Laundering Case
Jian Wen's life changed after meeting "Hua Hua," but it also came with corresponding risks.
From 2016 to 2020, Jian Wen's reported income to the UK tax authorities showed that she earned no more than 6,000 pounds in 2016, had no income in 2017, and no employment record in 2018. However, after Jian Wen and Qian Zhimin became joint tenants, many changes occurred in their lives.
On September 24, 2017, a woman named "YA Zhang" opened a membership account at the luxury department store Harrods in London, and the account information was changed to Jian Wen's the following month. After about three months of having the membership account, purchases of multiple high-end women's clothing, shoes, and other items had already cost 92,000 pounds. In January 2018, Jian Wen purchased a Mercedes-Benz car for over 24,000 pounds. Subsequently, Jian Wen frequently traveled abroad alone or with "Hua Hua." When Jian Wen and "Hua Hua" traveled outside the UK, they avoided countries that had extradition treaties with China. Jian Wen also exchanged small amounts of Bitcoin outside the UK and explored ways to trade in cryptocurrency with others.
Attempting to use Bitcoin to purchase high-value properties in London was one way Jian Wen and "Hua Hua" tried to deal with Bitcoin. In November 2017, Jian Wen contacted a property agent in London to find available properties for sale. Purchasing a property in the UK requires hiring a lawyer to assist with the transaction process. The buyer must transfer the purchase funds to an account designated by the law firm, and the buyer's lawyer will verify the buyer's identity and conduct an anti-money laundering funds investigation in accordance with relevant regulations.
According to information related to Jian Wen's case, in February 2018, "Hua Hua" was interested in a mansion worth 23.5 million pounds. Jian Wen communicated with the property agent and lawyer and executed the property purchase process. Jian Wen contacted a company that could convert Bitcoin into fiat currency and obtain a report on the source of the funds to provide to the lawyer. Subsequently, some Bitcoin was transferred to that company as a "transaction test" in exchange for pounds, and the funds were then transferred to the law firm's designated account. Shortly after, more Bitcoin was exchanged for pounds and transferred to the law firm's designated account. These two amounts, totaling about 850,000 pounds, were the deposit required to purchase the property. During this process, the lawyer repeatedly inquired about the source of the funds. Soon after, due to the seller's request for a price increase, the property purchase was not continued.
The determination to purchase a property was not hindered by this, and Jian Wen and "Hua Hua" then attempted to purchase another property in London worth 12.5 million pounds. However, the challenge of converting a large amount of Bitcoin into fiat currency remained. On January 31, 2018, a strict new policy called the "Unexplained Wealth Order" came into effect in the UK, aimed at compelling targeted individuals to disclose the source of their unexplained wealth and combat economic crimes. The lawyer sent Jian Wen the relevant content of the "Unexplained Wealth Order" and indicated that further information on the source of the assets might be required for the property purchase. In response, Jian Wen explained that the Bitcoin was "mined by Ms. Zhang" and she was unlikely to provide proof, as the Bitcoin was not valuable at the time. After seeking expert advice, the lawyer requested Jian Wen to provide the Bitcoin wallet address to verify whether the Bitcoin was generated by "mining." Subsequently, Jian Wen was also asked to provide detailed information about "Hua Hua."
As these issues remained unresolved, the property purchase in the UK was halted, and Jian Wen then turned her sights to purchasing property outside the UK. In Dubai, Jian Wen acted as a proxy to purchase two apartments, which were subsequently traded again.
In October 2018, the London police contacted Jian Wen via email, informing her that the funds transferred to the law firm's designated account had been frozen and that the source of the money might be related to criminal activity. Jian Wen never replied to this email. In May 2021, Jian Wen was arrested and subsequently prosecuted by the UK's Crown Prosecution Service. The materials provided to the court by the Crown Prosecution Service mentioned that the money laundering funds were related to a Chinese investment fraud case, and the company involved was Lantian Ge Rui.
During Jian Wen's trial, the defense argued that Jian Wen was not aware that the Bitcoin involved in the case was derived from criminal proceeds, and she deeply regretted being involved with Yadi Zhang. If it were not for Yadi Zhang, Jian Wen would not have been implicated.
On May 24, 2021, Jian Wen was sentenced to 80 months in prison for her involvement in money laundering. According to the information obtained by the "Finance" reporter, although the prosecution had previously brought multiple charges against Jian Wen, the court determined that Jian Wen's involvement in money laundering was related to 150 Bitcoins. This was a digital wallet controlled and managed by Jian Wen, which received 150 Bitcoins. Jian Wen converted some of the Bitcoins into cash, with most of the Bitcoins being laundered through Dubai and Switzerland, and the remaining 33.89 Bitcoins were seized by the police. The judgment also mentioned that there was no evidence linking Jian Wen to the Chinese investment fraud case.
The criminal trial for Bitcoin money laundering in the UK has not yet concluded. On May 22, 2021, a person named Yadi Zhang, who is actually Qian Zhimin, appeared in a UK court. Another defendant named Senghok Ling also appeared in court with Qian Zhimin. Information about this person is currently unknown. It is reported that the court has scheduled Qian Zhimin's trial for October 21.
Cross-Border Asset Recovery
After learning about Qian Zhimin's involvement in Jian Wen's money laundering and its connection to a criminal case in China, Xu Jing, Zheng Jian, and other investors who suffered financial losses have renewed hope. However, the assets seized by the UK are subject to a civil recovery process initiated by the UK's Crown Prosecution Service. If it is confirmed that there are no other legitimate claimants, these assets will be formally confiscated, determining how to handle the proceeds of crime.
In April 2024, upon hearing this news, Xu Jing and some investors contacted the email address of the UK court handling Jian Wen's case and proactively wrote to assert their rights. In the letter, Xu Jing explained that the investors stated that they are the rightful owners of the Bitcoin and assets involved in Jian Wen and Qian Zhimin's case and hoped that the relevant departments of the UK court and other authorities would provide a declaration process for the investors to recover their losses. Two days after sending this letter, they received a reply from the UK court, stating that the letter had been forwarded to the Crown Prosecution Service's department for the investigation of proceeds of crime.
On May 16, the Hedong Branch of the Tianjin Public Security Bureau issued a case briefing stating that since the investigation into the suspected illegal absorption of public deposits by Tianjin Lantian Ge Rui Electronic Technology Co., Ltd., they have intensified efforts to organize and carry out various tasks. In February 2018, the Tianjin public security organs issued a red notice through Interpol for the main suspect Qian Zhimin, and launched a global manhunt. They have also continued international fugitive repatriation and asset recovery cooperation with relevant law enforcement agencies in the UK and other countries through international law enforcement cooperation channels.
In the Lantian Ge Rui series of cases, Chinese law enforcement agencies have made full efforts to recover the proceeds of crime, and have lawfully frozen and seized a batch of assets related to the case, prioritizing the recovery of proceeds. Previously, the Lantian Ge Rui case clearing team registered information from participants nationwide. An investor told "Finance" reporters that they have received two notifications of refund disbursement so far, which represent a small portion of their losses.
Regarding the case clearing work, on May 16, "Finance" reporters called the phone number previously released by the Tianjin Lantian Ge Rui case clearing team. A team member said, "Please be patient and wait."
Huang Feng, a professor at the Criminal Law and Legal Science Research Institute of Beijing Normal University and an expert on international fugitive repatriation and asset recovery, analyzed to "Finance" reporters that to enhance the recovery of criminal proceeds, the UK's "Proceeds of Crime (Recovery) Act" introduces two recovery mechanisms: the criminal confiscation system targeting criminal proceeds and the civil recovery system targeting illegal gains. The civil recovery procedure is essentially a lawsuit for specific property, including proceeds obtained through illegal activities and property intended for illegal activities. The civil recovery procedure is not directly related to criminal proceedings, and regardless of whether criminal proceedings related to the illegal gains have been initiated, civil recovery of illegal gains can proceed independently.
Huang Feng stated that based on publicly available information, the amount of Bitcoin laundering involved in the Jian Wen case is relatively small compared to the entire seized Bitcoin case, and the UK has initiated a civil recovery procedure. According to the relevant procedure, the rightful owners of the assets involved in the case have the right to make a claim in the civil recovery procedure. If the claim is found to meet the conditions after judicial review, the property should be excluded from the scope of "recoverable property." Therefore, investors in the Lantian Ge Rui case can assert their rights in the UK and seek recovery through civil proceedings.
At the same time, Huang Feng pointed out that with Qian Zhimin's recent return and the initiation of criminal proceedings against her, the assets involved, including Bitcoin, can also be recovered through criminal confiscation. The choice of method will need to be further clarified in the future. If criminal confiscation is pursued, China and the UK can cooperate in the field of criminal judicial assistance. According to the "Treaty between the People's Republic of China and the United Kingdom of Great Britain and Northern Ireland on Mutual Legal Assistance in Criminal Matters," the requested party holding the confiscated assets can, within the scope permitted by its laws, return or share the assets or the proceeds from the sale of the assets with the requesting party. The conditions for the return or sharing of the assets and the proportion of the return and sharing are subject to agreement between the two parties.
It is understood that currently, some investors hope that the relevant Chinese authorities will communicate with the UK through judicial assistance and other channels. Some investors are also in contact with lawyers experienced in cross-border recovery, discussing the potential paths for recovering losses through civil proceedings. Investors like Zheng Jian hope to make every effort to recover or reduce their losses through the best possible means.
Zhao Qizhi, a lawyer at Ji Ren Law Firm, whose team focuses on resolving international disputes, recently told "Finance" reporters that while his team is in contact with investors in the Lantian Ge Rui case, they are closely collaborating with third-party funding organizations, well-known law firms in the UK, appointed barristers, and cryptocurrency experts to seek possible civil recovery or criminal avenues in the UK to help victims recover their losses. Recently, Zhao Qizhi's team received a response from the UK's Crown Prosecution Service (CPS) Economic Crime Division regarding issues related to the recovery of assets involved in the case.
Zhao Qizhi revealed that in its response, the CPS stated that they are aware that a considerable number of people in China have become victims of the initial case and are trying to seek recovery of their losses. Currently, in the criminal proceedings, Jian Wen has been convicted of one count of money laundering, and the confiscation procedure will take place after sentencing, but it is limited to this offense. Other suspects have been prosecuted, and criminal proceedings are ongoing. CPS is not discussing the case at this time, pending the outcome of the criminal trial. In light of these developments, CPS is considering its position in the civil recovery investigation, which is still ongoing, and therefore, CPS will not provide further information until the case is concluded. Members of their team have also consulted the CPS on the connection between civil recovery of Bitcoin and criminal confiscation, and CPS stated that if some or all of the assets are recovered through civil recovery proceedings, the sharing of the recovered funds in the UK will be considered in the usual manner.
Currently, regarding the cross-border recovery of 61,000 Bitcoins, Ding Jie, Director of the Cross-Border Dispute Resolution Committee at Duan and Duan Law Firm Headquarters, and his team have held preliminary meetings with stakeholders and victims of the Lantian Ge Rui case to discuss cross-border recovery plans and strategies. Ding Jie and his team previously represented Chinese victims in handling the cross-border bankruptcy case of the cryptocurrency exchange FTX.
Ding Jie told "Finance" reporters that his team has been representing some clients in the Lantian Ge Rui case, providing them with initial pro bono legal advice, and is actively following up on the cross-border recovery process for the Lantian Ge Rui case. They have recently communicated and deliberated with several UK law firms to advance the specific implementation of the cross-border recovery plan for the Lantian Ge Rui case. To address the costs of cross-border recovery, their team is in contact with international litigation funding institutions to consider whether to introduce internationally popular litigation funding.
The road to cross-border recovery still faces many challenges, and "both Chinese and British lawyers agree that this case has historical significance," Ding Jie said.
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