Cryptoupdated 1h ago2 min read
London High Court Says Chinese Law Governs Ownership Dispute Over 61,000 Seized Bitcoin
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London High Court ruled Chinese law governs claims to 61,000 seized Bitcoin Ruling does not determine ownership; sets framework for restitution claims under Chinese law
Choice of Law
A London High Court ruling said Chinese law should govern the ownership dispute over 61,000 seized Bitcoin, and the court said it chose Chinese law because the victims lost money in China and the related contractual relationships were also formed there. The ruling concerned 61,000 BTC seized by London’s Metropolitan Police during an investigation tied to Zhimin Qian, who pleaded guilty to defrauding thousands of people in China.
Justice Mark Turner said, "The relevant damage occurred in China," and he added that the applicants parted with their money in China. The court also said the decision does not determine the final ownership of the Bitcoin, and it said it would later examine under Chinese law whether the ownership claims should be recognized.
Victims plan to appeal
Chinese fraud victims seeking to recover the seized Bitcoin faced a legal setback after the High Court ruled that Chinese law, rather than English law, should govern their claims to the assets. Justice Mark Turner rejected arguments for applying English law or a combination of English and Chinese law, and the judge ruled that Chinese law must determine whether the claimants have property rights in the seized Bitcoin.
The Crown Prosecution Service said a further hearing would examine how Chinese law applies and whether any victims can establish an interest in the bitcoin. Victims’ lawyers said they are appealing the choice-of-law ruling, and the case will remain before the High Court in London rather than being transferred to a Chinese court.
What is at stake
The ruling strengthened the U.K. government’s chances of keeping most of 3.8 billion pounds, or $5 billion, in seized bitcoin by narrowing the victims’ route to recovering the coins. The dispute centers on a Ponzi scheme run through Tianjin Lantian Gerui Electronic Technology, which defrauded over 128,000 investors between 2014 and 2017, and the stolen funds were converted into bitcoin.
The Crown Prosecution Service said upcoming hearings would determine whether any victims can prove ownership of these bitcoins, while the court’s decision still left open who ultimately owns or how any recovery will be divided. Across the Atlantic, the U.S. established a Strategic Bitcoin Reserve in March 2025 that includes BTC and other tokens seized during law enforcement operations, and Arkham Intelligence said addresses linked to the U.S. government hold $25.8 billion worth of cryptocurrencies.