- UK seizes 61,000 Bitcoins worth nearly $7 billion in one of the largest crypto fraud recoveries in the world.
- Zhang and Ling plead guilty to laundering proceeds from a $5.6 billion Chinese investment scam.
- Civil claims threaten the seized Bitcoins as victims and the UK government compete for recovery.
Two people accused in one of the largest cryptocurrency frauds in UK history have pleaded guilty to charges of laundering criminal proceeds using Bitcoin.
Yadi Zhang, 47, also known as Zhimin Qian, admitted possessing and transferring criminal property, while his associate Seng Hok Ling, also 47, pleaded guilty to charges related to cryptocurrency trading.
Their guilty pleas were entered on the eve of a 12-week trial at a London court.
Both defendants are due to be sentenced on 10 November.
The case stems from the 2018 seizure of approximately 61,000 Bitcoins from a West London property — a haul now valued at nearly $7 billion.
The seizure is among the largest recoveries of cryptocurrency assets ever carried out by law enforcement worldwide.
Prosecutors say Zhang organised a fraudulent investment scheme that generated a substantial portion of the illicit funds, and that Ling helped move those proceeds into cryptocurrency accounts.
Background of the fraud and investigation
The criminal case ties into a broader investment scam originating in China.
Chinese authorities began investigating an alleged fraudulent operation in Tianjin in 2017, which ultimately defrauded over 128,000 people across the country.
The scheme, operating under the Tianjin Lantian name, lured investors with promises of high returns and is reported to have stolen about 40 billion yuan (roughly $5.6 billion).
Fourteen Chinese nationals have been convicted in connection with that scheme.
In the UK, Zhang and his associates are accused of facilitating part of those proceeds through cryptocurrency transactions.
Another woman involved, Jian Wen, who lived with Zhang in Hampstead, was previously convicted of laundering Bitcoin and sentenced to more than six years in prison.
Wen’s role highlighted the rapid lifestyle and asset changes that can follow participation in such schemes: she moved from working in a fast-food restaurant to owning a six-bedroom home, taking international trips and making luxury purchases.
Zhang’s lawyer, Roger Sahota, said the guilty pleas “may bring some comfort to investors who have been waiting for compensation since 2017,” and he emphasised the impact on victims deceived both in China and the UK.
Legal and financial implications
The case underscores growing concerns about the use of cryptocurrencies in organised crime.
Robin Weyell, a deputy chief prosecutor at the Crown Prosecution Service, said: “Organised criminals are increasingly using Bitcoin and other cryptocurrencies to disguise and move funds so fraudsters can enjoy the proceeds of their crimes.”
With Zhang and Ling admitting guilt, the criminal phase of this high-profile UK prosecution is concluding.
Attention will now shift to civil proceedings that will determine how recovered cryptocurrency is distributed between defrauded investors and the UK government.
The outcome is likely to influence future enforcement and recovery actions in crypto-related financial crime cases.
The case also highlights the intersection of international crime and digital finance and reinforces that cross-border cooperation is vital to tackle large-scale fraud.
Authorities in both China and the UK coordinated efforts to trace, seize and prosecute illicit assets, reflecting a growing global focus on preventing and disrupting crime enabled by cryptocurrencies.