U.K. to turn £5bn Bitcoin haul into victim compensation fund

Key Takeaways

What triggered the U.K.’s compensation move?

The Crown Prosecution Service confirmed it will design a restitution plan following the £5 billion Bitcoin seizure.

What’s next in the case?

Sentencing for Qian and her associate is set for 10–11 November, with a civil recovery and compensation order expected to follow.

The U.K. government is preparing to establish a compensation scheme for victims of a Chinese crypto fraud. 

The update—reported by The Financial Times on 15 October—follows the Metropolitan Police’s September announcement. 

The Crown Prosecution Service (CPS) confirmed that it will develop a restitution framework for the largest U.K. Bitcoin seizure.

The Met Police announced that it had confiscated 61,000 Bitcoin, now worth approximately £5 billion, from Chinese national Zhimin Qian (also known as Yadi Zhang) and her associate, Seng Hok Ling.

Qian and Ling pleaded guilty at Southwark Crown Court last month to offences under the Proceeds of Crime Act (2002). They orchestrated a massive investment fraud in China that defrauded more than 128,000 victims.

DPP confirms restitution plan

According to the FT report, Stephen Parkinson, Director of Public Prosecutions, told victims that the government is exploring a formal compensation scheme. However, details have not yet been disclosed.

CPS counsel Martin Evans KC told the court that such a framework would offer “adequate protection for victims.”

Evans revealed that Qian had recently disclosed new access codes and passwords for additional wallets containing roughly £67 million in crypto assets. 

A hidden ledger found inside a pocket of her clothing at the time of her arrest reportedly helped investigators locate the funds.

Victims’ lawyer William Glover of Fieldfisher said the DPP has “accepted responsibility” to create a restitution process for those unable to recover losses through standard legal channels.

Context: world’s largest crypto seizure

The Met Police’s Economic Crime Command described the case as the largest U.K. Bitcoin seizure and money-laundering operation. They also stated that they had assistance from Chinese law enforcement and the CPS.

Sentencing for Qian and Ling is scheduled for 10–11 November at Southwark Crown Court, after which a civil recovery and compensation order is expected.

Global parallel: U.S. pursues $12 billion forfeiture

The U.K. move comes just days after the U.S. Department of Justice filed to forfeit 127,271 BTC (worth about $12 billion). 

The fund is linked to a transnational “pig-butchering” scam run by Chen Zhi, connected to Cambodia’s Huione Group.

That U.S. case marked the largest crypto forfeiture in history, showing a growing international effort to recover illicit digital assets.