UK officials are considering whether to keep billions in profits from seized Bitcoin related to a major fraud case, instead of giving victims the full current value, according to the Financial Times.
A report from the Financial Times on Thursday revealed that the UK High Court might opt to reimburse victims only the original investment value, around 640 million British pounds ($862 million). This is despite the seized 61,000 Bitcoin (BTC) being valued at nearly $7.24 billion, resulting in a surplus of roughly $6.4 billion.
The Bitcoin was confiscated in 2018 in North London from fraudsters who deceived 128,000 investors in China. Some Treasury officials are examining whether this windfall could alleviate a budget deficit of up to 30 billion pounds ($40.5 billion). Under current rules, assets taken under the Proceeds of Crime Act are typically directed to the Home Office or the Treasury Consolidated Fund, with compensation mandated by the court when necessary.
The FT also noted that other officials in the government have recommended caution, as such a decision could result in a prolonged legal dispute over the Bitcoin proceeds. The Treasury has been advised not to factor the funds into its financial plans.
Related: US DOJ files to seize $225M in crypto tied to pig butchering schemes
Largest crypto seizure in history
The assets involved were taken from Chinese national Zhimin Qian and her Malaysian assistant, Seng Hok Ling, who both pleaded guilty earlier this week. The local police force announced they had achieved what is believed to be the largest cryptocurrency seizure globally.
This seizure resulted from a seven-year investigation by the London Metropolitan Police’s Economic Crime team into international money laundering. Qian pleaded guilty to acquiring and possessing criminal property, while Ling admitted to transferring criminal property.
Between 2014 and 2017, Qian orchestrated a significant fraud scheme in China, defrauding over 128,000 victims. These assets were subsequently converted to Bitcoin during her escape from China, using false documents to enter the UK.
In September 2018, Qian tried to launder the proceeds by purchasing property. Police tracked her via Ling, leading to their arrest in April 2024, along with the seizure of encrypted devices, cash, gold, and cryptocurrency.
Related: Germany seizes $38M in crypto from Bybit hack-linked eXch exchange
The latest in many crypto seizures
Earlier this month, Canadian authorities seized $40 million in crypto from TradeOgre, with the exchange’s supporters criticizing the action as excessive due to a lack of Know Your Customer procedures.
In mid-August, the US Justice Department authorized the capture of more than $2.8 million in cryptocurrency, along with other assets, as part of a criminal case against an alleged ransomware operator. In early July, Bloomberg reported that the US Secret Service seized nearly $400 million in digital assets over the past decade.
Sweden’s justice minister also urged local authorities to focus on operations that could yield larger asset seizures, including those in cryptocurrency.
In June, US crypto exchange Coinbase announced its assistance in helping the US Secret Service seize $225 million in crypto, which marked the agency’s largest seizure of digital assets to date.
Magazine: Thailand’s ‘Big Secret’ crypto hack, Chinese developer’s RWA tokens: Asia Express
