Mastermind Behind World’s Largest Crypto Scam Operation Pleads Guilty
TL;DR Breakdown
- UK Police seize £5.5 billion worth of cryptocurrency from Zhimin Qian
- Qian fled from China after being involved in a crypto fraud scheme that defrauded over 128,000 victims
- This is the world’s largest cryptocurrency seizure, with 61,000 BTC confiscated
UK local media reports the world’s largest cryptocurrency seizure as Zhimin Qian, a Chinese national who fled to the UK using false documents, pleads guilty to running a large-scale cryptocurrency fraud scheme. The police have seized 61,000 BTC that are currently worth $7.4 billion, an amount larger than the UK’s current cryptocurrency reserves.
Zhimin Qian, the criminal mastermind behind a long-running crypto scam operation
Zhimin Qian, a Chinese national, masterminded a multibillion-dollar crypto scam operation between 2014 and 2017. During this time, Zhimin stole from more than 128,000 victims, amassing billions in ill-gotten wealth. In 2018, Zhimin forged fake documents and fled China to enter the UK, planning to launder her funds by buying property in the region.
However, her plans were foiled as the Metropolitan Police conducted a seven-year investigation leading to the conviction of Zhimin Qian. The Met’s Economic Crime team conducted a thorough investigation into the stolen funds, which eventually led to Zhimin’s arrest and her subsequent guilty plea.
Is crypto crime increasing in recent years?
Crypto-related crimes have seen a noticeable rise in recent years, with billions lost to hacks, scams, and fraud schemes worldwide. Reports from blockchain analytics firms show that while overall transaction volumes continue to grow, illicit activity still accounts for a significant share of the market.
This activity is accentuated by privacy services like Tornado Cash that have now become means of laundering stolen, hacked or otherwise illegally acquired cryptocurrency. While exchanges and regulators increase scrutiny on privacy chains like Monero, DeFi protocols, and on-chain privacy services are much harder to crack down on.
In the UK, cases of crypto fraud reported to Action Fraud have surged, prompting regulators to introduce stricter rules for exchanges and advertising. The Zhimin Qian case highlights how large-scale scams can persist for years, but it also shows that law enforcement agencies are becoming more effective at tracing digital assets and bringing offenders to justice.
