Judge Mark Turner of the London High Court ruled on Monday (October 12, 2026) that Chinese law - not English law - governs ownership claims over 61,000 BTC seized by London’s Metropolitan Police. Valued at over $5 billion according to CoinGecko data, the assets are now being contested between 128,000 fraud victims and UK law enforcement authorities.
For the victims, determining jurisdiction is not merely a procedural formality, but the difference between receiving the actual coins or mere cash compensation.
Why Jurisdiction Determines Ownership
The 61,000 Bitcoin assets originated from a Ponzi scheme operated by Zhimin Qian through Tianjin Lantian Gerui Electronic Technology between 2014 and 2017. Qian defrauded more than 128,000 investors, converted the stolen funds into Bitcoin, and fled to the UK in 2017 before eventually pleading guilty to the charges.
At the London High Court, the victims, represented by law firm Fieldfisher, argued that English law should govern the dispute. English legal principles could potentially grant them direct proprietary ownership over the seized Bitcoin, rather than mere unsecured creditor status.
Judge Turner rejected the argument, ruling that the location of the harm was the decisive factor. “The relevant damage occurred in China. The applicants parted with their money in China… the induced contractual relationship was made in China,” the judge wrote in his ruling.
Appeal Underway, Coins Remain in London
This ruling does not move the physical Bitcoin or the legal proceedings to China. The case remains in London, with the next stage set to involve testimony and evidence from Chinese legal experts.
The Crown Prosecution Service stated that future hearings will examine the application of Chinese law and the victims’ proprietary interest in the seized assets. Responding to the ruling, Fieldfisher immediately filed an appeal. The judge also emphasized that this preliminary ruling does not yet determine the final owner of the 61,000 Bitcoin, as the victims’ rights under Chinese law have yet to be assessed in subsequent proceedings.
UK Treasury Poised to Capture Coin Appreciation
The direction of this ruling strengthens the UK Treasury’s position to retain most of the seized Bitcoin’s value appreciation. If victims under Chinese law are only entitled to the restitution of their original principal funds, the multibillion-dollar difference from Bitcoin’s price surge could end up in UK state coffers.
State management of seized crypto has become a global focus, particularly after the United States institutionalized seized Bitcoin as a Strategic Bitcoin Reserve in March 2025. The US government currently holds $25.8 billion in crypto assets, according to Arkham Intelligence data.
For the 128,000 victims of Qian’s fraud, this jurisdictional ruling prolongs their legal battle. The recovery path still hinges on testimony from Chinese legal experts, but the chances of receiving the coins in full continue to dwindle.
Reported via Cointelegraph.
Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
