A Chinese court has accepted prosecutors’ application to confiscate more than 61,896 bitcoin and other assets linked to an alleged illegal fundraising scheme that raised more than 40 billion yuan ($5.7 billion), according to a court announcement reported by The Paper.

The Tianjin No. 2 Intermediate People’s Court accepted the application on September 28, the court said in an announcement published on October 13. The application concerns assets allegedly linked to Qian Zhimin, the actual controller of Tianjin Lantian Gerui Electronic Technology Co, known as Blue Sky Gri.

Prosecutors are seeking the confiscation of 61,896.41552945 bitcoin, alongside other cryptocurrencies, cash, jewellery, bank balances and investment assets. The application marks a new stage in efforts to recover funds connected to the case, which authorities say caused substantial losses to investors.

The court said it had reviewed evidence indicating that Qian had committed fundraising fraud and determined that it had jurisdiction because the principal alleged criminal activity took place in Tianjin’s Hedong district.

The acceptance of the application does not itself constitute a final confiscation order. The court said interested parties could apply to participate in the proceedings during a six-month announcement period, after which it would hear the case.

Scheme raised more than 40 billion yuan

According to the application disclosed in the court announcement, Qian and associates raised more than 40.378 billion yuan between April 2014 and August 2017 by marketing investment products under Blue Sky Gri’s name in several parts of China.

Prosecutors said the products were sold without the required authorisation from Chinese financial regulators. Investors were reportedly promised principal protection, interest payments and attractive returns, with investment agreements signed with members of the public.

The application said the money was used to repay principal and interest to earlier investors, operate purported investment projects, acquire bitcoin and purchase property, vehicles, jewellery and other assets.

Most of the funds were not used for productive business operations, according to the prosecution’s account.

More than 102,000 participants suffered investment losses totalling over 19.977 billion yuan, the application said.

The figures describe the allegations and losses set out in the legal documents cited by the court. The confiscation proceedings will determine how the assets are handled under the applicable legal process.

Cryptocurrency and other assets identified

The assets listed in the application extend beyond bitcoin, reflecting the alleged conversion of funds into different cryptocurrencies and other forms of wealth.

The court’s announcement identified approximately 72,746 bitcoin cash, 72,746 bitcoin gold and 72,746 Bitcoin SV tokens, alongside about 3.606 million XRP tokens.

The application also listed approximately 70.08 million dogecoin. According to the announcement, British authorities had converted the dogecoin into funds held in an interest-bearing account.

Other assets included cash denominated in U.S. dollars, euros and pounds sterling, jewellery, bank balances and investment portfolios.

The quantities and asset descriptions are those reported in the Chinese court announcement. The value ultimately recoverable will depend on the assets available, applicable legal decisions and any claims recognised in the proceedings.

Assets traced to Britain

The case also involves legal proceedings in the United Kingdom, where authorities seized cryptocurrency and other property linked to the alleged scheme.

According to the Chinese court’s account, Qian left China in July 2017 with assistance from others, taking property that included a computer containing a bitcoin wallet. She subsequently travelled through several locations before reaching Britain, the announcement said.

Prosecutors allege that some of the bitcoin was later converted into other assets, held or spent by other people.

The British proceedings have focused in part on the legal ownership of approximately 61,000 bitcoin and the question of who is entitled to benefit from the cryptocurrency’s appreciation in value.

The Paper reported that Britain’s High Court had recently ruled that Chinese law, rather than British law, should govern the property dispute involving the bitcoin. The ruling concerns the law applicable to the ownership question; it does not, by itself, establish how much compensation individual investors will receive.

Britain’s Crown Prosecution Service said further hearings would address whether victims could establish rights to the assets, according to The Paper’s report. Law firm Fieldfisher, which represents some victims, said it was seeking to appeal the ruling.

The eventual outcome could affect how the seized cryptocurrency is distributed and how competing claims are assessed across the two jurisdictions.

Victims can apply to participate

The Tianjin court’s announcement provides a route for investors and other interested parties to take part in the Chinese proceedings.

Close relatives of Qian and other interested parties may apply to participate during the six-month announcement period. Investors seeking recognition as interested parties must submit their applications through the Tianjin No. 2 Intermediate People’s Court’s dedicated WeChat mini-program, the court said.

The court also stated that investors who do not participate in the proceedings would not automatically lose the ability to receive repayments from assets recovered in the case.

Any distribution will depend on the court’s decisions and the applicable procedures for returning recovered property to eligible investors.

The proceedings are therefore significant not only for the potential recovery of cryptocurrency but also for determining how competing claims are handled and whether recovered assets can offset some of the reported losses.

Recovery remains subject to legal decisions

The case illustrates the legal and practical challenges involved when funds raised through alleged financial fraud are converted into cryptocurrency, moved across borders and subsequently transformed into other assets.

Bitcoin prices can change substantially over time, meaning the value of a seized holding may differ considerably from the amount originally invested or the losses recorded by victims. The amount ultimately available for distribution cannot be established from the reported token quantities alone.

The Chinese confiscation application and the British property proceedings are related but distinct legal processes. Their outcomes will determine which assets can be confiscated, which claims are recognised and how any eligible repayments are handled.