A woman has admitted to money laundering offenses related to the United Kingdom’s largest-ever cryptocurrency seizure, which involved Bitcoin currently valued at over Ksh869 billion. The accused, 47-year-old Chinese national Yadi Zhang, also known as Zhimin Qian, was arrested in April last year after being on the run for several years.
Zhang first entered the UK in 2017 using a fraudulent St Kitts and Nevis passport. During her time in the country, she allegedly orchestrated a £5 billion investment scam in China that affected 130,000 investors between 2014 and 2017. She was initially tracked down in 2018 when police raided her rented home in Hampstead Heath, London, and discovered evidence of her involvement in illicit activities. However, it wasn’t until two and a half years later that investigators uncovered over 61,000 Bitcoins hidden in digital wallets, making it one of the largest cryptocurrency seizures worldwide.
At the time of the discovery, the seized Bitcoin was worth approximately Ksh244 billion. Since then, the value of the cryptocurrency has surged, now exceeding Ksh869 billion. This fortune is currently at the center of a legal battle between the UK government and Chinese investors, both of whom are claiming ownership of the assets.
The UK government, under Chancellor Rachel Reeves, has indicated that the seized cryptocurrency may be used to help fill gaps in the country’s public finances. Zhang’s case had been scheduled for trial at Southwark Crown Court, but she pleaded guilty to charges of possessing and transferring criminal property before the trial could take place. She appeared in court wearing a beige cardigan over an animal print blouse and acknowledged her identity before entering her plea through a Mandarin interpreter.
In a related case, Jian Wen, a 43-year-old woman, was sentenced to six years and eight months in prison after being convicted of money laundering. Her charges, related to the laundering of 150 Bitcoins between 2017 and 2022, highlighted the growing issue of cryptocurrency being used for illegal activities. Wen was found to have acted as a “front person” to disguise the source of the money, much of which had been smuggled out of China on laptops and used to buy cryptocurrency.
Zhang remains in custody while awaiting sentencing, with the fate of the seized Bitcoin still uncertain as the legal proceedings unfold.
