According to blockchain analytics platform Arkham Intelligence, the UK government holds billions of dollars in Bitcoin. A wallet linked to the government contains 61,245 BTC, valued at approximately $6 billion, with an estimated unrealized profit of over $28 million from Bitcoin's price increase.
Bitcoins Originated from Seized Assets
Arkham revealed that the UK government obtained the Bitcoin as seized assets from Zhimin Qian, a fraudster involved in a multi-billion-pound scam.
Although the wallet was last active three months ago, most of the Bitcoin was seized within the past three years.
First transfer: 2,400 BTC worth $93 million.
Second transfer: Another 2,400 BTC.
Final transaction: 19,200 BTC worth $750 million.
Qian Zhimin Faces Fraud Charges
Zhimin Qian, a Chinese national, defrauded over 130,000 Chinese investors between 2014 and 2017, amassing a total of $5.6 billion. Key to the scheme was Jian Wen, who was recruited in 2017 from a fast-food shop in East London.
Jian Wen has been sentenced to 6 years in prison for conspiracy and money laundering.
Zhimin Qian will face trial in September next year at the Southwark Crown Court.
Co-defendant Seng Hok Ling has denied related charges.
Blockchain Transparency Aided in Discovery
Thanks to blockchain's transparency, these financial frauds were easily traced. The open nature of blockchain transactions allowed authorities to follow the stolen funds. The Securities Agency leveraged this technology to efficiently uncover fraudulent activities and seize digital assets.
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