A fraudster known as the BitQueen has admitted laundering cryptocurrency worth more than £5 billion which the government hopes will help to plug the hole in the budget.
Zhimin Qian fled to the UK after defrauding an estimated 128,000 investors in China. She pleaded guilty at Southwark crown court on Monday to possessing criminal property and transferring criminal property.
The investigation led to what is believed to be one of the largest seizures of criminal assets in British history. That is now at the centre of intense diplomatic and political negotiations between London and Beijing over the rights to the bitcoin fortune.
Rachel Reeves, the chancellor, is reported to have earmarked the seized cryptocurrency to shore up the nation’s finances. The Chinese Communist Party also wants the money, arguing that it originates from a Ponzi scheme targeting its citizens.
The bitcoin is said to be in government accounts after it was seized from online wallets held by Jian Wen, a former Chinese takeaway worker who helped to launder the proceeds of the fraud.
