Fixer for 'Bitcoin Queen' Pays Back Millions in UK Money Laundering Scheme

Hok Seng Ling, a fixer for Chinese fraudster Qian Zhimin, known as the 'Bitcoin Queen,' has paid back £5.6 million to the British government. Ling admitted his role in what is described as the largest money laundering scheme in UK history, which defrauded over 128,000 Chinese investors between 2014 and 2017 before funneling proceeds into Bitcoin.

Ling, a Malaysian national residing in Derbyshire, acted as a "butler" to Qian, assisting her in laundering illicit gains and evading law enforcement by arranging accommodations and support. Following his admission to money laundering offenses, he was sentenced to four years and 11 months in prison at Southwark Crown Court in November. A subsequent confiscation order for £5,603,305, largely comprising cryptocurrency seized during Ling's arrest, has now been fully recovered, according to a freedom of information request by the Mail to the Crown Prosecution Service (CPS), along with an additional £1,990 in interest.

This recovery occurs amidst a significant legal dispute over the fate of 61,000 Bitcoin, valued at approximately £3.8 billion, seized by the Metropolitan Police during their investigation into Qian. Lawyers representing the Chinese victims are contesting the British Treasury's claim to the increased value of this cryptocurrency, which is currently held by the UK government. The central issue in the dispute is whether English or Chinese law should govern the victims' claims.

English law is generally considered more favorable to victims, potentially allowing them to claim the full value of the seized Bitcoin, rather than just their original investment amount. However, a recent ruling by Mr. Justice Sir Mark Turner determined that Chinese law should govern these claims. This decision increases the likelihood that the British state may retain a substantial portion of the Bitcoin's appreciated value. The judge cited that the "relevant damage occurred in China. The applicants parted with their money in China. The alleged fraudulent representations were made in China." While not a final determination of ownership, the ruling complicates the victims' ability to reclaim the Bitcoin under English law. They will now need to demonstrate legal ownership rights under Chinese law for the English court to consider their return.

Qian, who masterminded the Ponzi scheme, fled to the UK in 2017 using false documents and attempted to launder the proceeds through property purchases with the help of an associate, Jian Wen. The scheme initially came to police attention in 2018 when 61,000 Bitcoin were seized from Wen's £5 million mansion in Hampstead. The Metropolitan Police did not realize the seized devices contained Bitcoin until 2021, by which time Qian had disappeared. This seizure is believed to be the largest Bitcoin seizure by law enforcement globally. Qian was arrested and charged in April 2024.

Qian, who operated a Chinese firm called Tianjin Lantian Gerui Electronic Technology, promised investors up to 300% returns, but instead used their funds for personal enrichment via Bitcoin. She was known to refer to herself as the 'Goddess of Wealth' and harbored ambitions of associating with British royalty. Her attempts to purchase luxury properties in London, which triggered money-laundering checks, ultimately led to her apprehension. Her assistant, Jian Wen, was convicted of money laundering and sentenced to six years in prison in 2024. The legal proceedings concerning the ownership of the seized Bitcoin will continue in the High Court in London, with further hearings scheduled to determine the application of Chinese law and any established victim interests.