Qian Zhimin, Main Suspect in Tianjin Lantian Gerui Case, Denies Bitcoin Money Laundering Charges in UK, Victims Seek Cross-Border Recovery

Qian Zhimin, Main Suspect in Tianjin Lantian Gerui Case, Denies Bitcoin Money Laundering Charges in UK, Victims Seek Cross-Border RecoveryOn October 21, 2023, Qian Zhimin, the main suspect in the Tianjin Lantian Gerui Electronic Technology Co., Ltd

Qian Zhimin, Main Suspect in Tianjin Lantian Gerui Case, Denies Bitcoin Money Laundering Charges in UK, Victims Seek Cross-Border Recovery

On October 21, 2023, Qian Zhimin, the main suspect in the Tianjin Lantian Gerui Electronic Technology Co., Ltd. (hereinafter referred to as Lantian Gerui) case involving illegal absorption of public deposits and the UK's largest Bitcoin money laundering case (formerly known as Zhang Yadi and Huahua), pleaded not guilty to the Bitcoin money laundering charges at the Southwark Crown Court in London.

According to Jiemian News reports, Qian Zhimin was charged with two counts of illegally possessing cryptocurrency by the UK's Crown Prosecution Service. Her lawyer said: Qian Zhimin denies all charges of criminal activity and intends to actively defend the case. Also appearing in court that day was a co-defendant named "SenghokLing", who also pleaded not guilty to one count of money laundering, knowing it to be criminal property.

The trial has attracted substantial attention due to Qian Zhimin's role as the mastermind behind the Lantian Gerui illegal absorption of public deposits case seven years ago. Her criminal gang was accused of converting these funds into Bitcoin assets before fleeing to the UK, resulting in 128,000 Chinese investors losing all their money and facing multiple challenges, including cross-border debt recovery, virtual currency ownership, and value conversion.

Representatives of the victims attended the trial and were present as observers, having been authorized by a cross-border asset dispute legal team. The legal team has submitted a civil claim for compensation to the UK High Court on behalf of the creditors.

In response to the demands of Chinese victims, the UK Crown Prosecution Service issued a statement on October 22, stating that the agency had initiated civil recovery proceedings earlier this year for assets frozen from Qian Zhimin and others in the UK. Intergovernmental contacts will only be made after the proceedings have progressed to the point stipulated in Section 281 of the Proceeds of Crime Act 2002.

The Crown Prosecution Service initiated civil recovery proceedings in the High Court earlier this year. Under this procedure, if no other individuals or entities claim ownership of the criminal assets, half will go to the UK police, and the other half will be allocated to the UK Home Office to facilitate the handling of proceeds of crime and prevent further crime.

The Beginning and End of the Lantian Gerui Case

Publicly available judgment documents show that on March 31, 2014, Qian Zhimin registered Lantian Gerui in Tianjin. Lantian Gerui had seven major regions Beijing-Tianjin-Hebei, Northeast, East China, South China, Central China, Northwest, and Southwest managing the sales of financial products nationwide.

From April 2014 to August 2017, Lantian Gerui launched ten financial products, using investment returns of 1 to 3 times as bait to illegally absorb public deposits.

According to China News Weekly, almost no "investors" knew Qian Zhimin's background. All they knew were the publicly available promotional information about Lantian Gerui and unverified rumors.

Lantian Gerui claimed that "Huahua" (Qian Zhimin's nickname at Lantian Gerui) graduated from Tsinghua University with two doctorates, had studied in the United States, and understood finance. Han Xinghai (pseudonym), an "investor" from Shenyang, heard that "Huahua" brought back a lot of technology from the United States. At a promotional meeting, he asked "Huahua" why she wouldn't allow photos. "She said it was because the technology she brought from the United States would be subject to sanctions from there if it got out."

Zhang Li (pseudonym) from Hohhot, Inner Mongolia, attended a promotional meeting organized by Lantian Gerui in Beijing in 2016, where she met Qian Zhimin. At the time, Qian Zhimin was wearing a pink and white veil and sitting in a wheelchair, being lifted up in the aisle leading to the podium. People were lifting Qian Zhimin and her wheelchair while shouting slogans, one of which was "Three Generations of Wealth," which came from Lantian Gerui's slogan: "Give Lantian Gerui three years, and Lantian Gerui will give you three generations of wealth."

On April 21, 2017, public security organs launched an investigation into Lantian Gerui for suspected illegal absorption of public deposits. In June 2019, the Hedong Branch of the Tianjin Public Security Bureau issued a notice. Public security organs arrested 50 suspects, including Ren Jiangtao, the legal representative of Lantian Gerui, 28 of whom were transferred for prosecution.

Ren Jiangtao confessed that he met Qian Zhimin through online gaming. He fully obeyed her commands in the game, and she made him the legal representative of Lantian Gerui. However, he was only a figurehead, and he actually followed Qian Zhimin's instructions.

According to a special audit, from August 2014 to July 2017, Lantian Gerui collected over 40.2 billion yuan, all of which was controlled and managed by Qian Zhimin. From April 2014 to August 2017, Lantian Gerui returned over 34.1 billion yuan to 128,409 people, used over 95.68 million yuan to purchase jewelry, over 91.89 million yuan to purchase real estate, over 210 million yuan for daily operating expenses, and 120 million yuan for the Life Cycle Customer Service Center project. Notably, over 1.14 billion yuan was used to purchase Bitcoin.

Qian Zhimin Flees to the UK with a Crypto Wallet

After the Lantian Gerui case broke, Qian Zhimin escaped abroad using a forged passport from a Commonwealth country, carrying a laptop with a crypto wallet containing Bitcoin that she had previously transferred via a subordinate's Huobi account.

In 2018, unable to convert Bitcoin into pounds sterling in time, Qian Zhimin and her assistant attempted to purchase a 23.5 million Hampstead mansion directly with Bitcoin. However, the transaction failed due to the unknown source of the funds, raising police suspicion.

During the investigation, UK police seized over 61,000 Bitcoin, the largest seizure of cryptocurrency in the UK's history. Based on the latest price of Bitcoin on October 22, at $67,047 per Bitcoin, the total value of these Bitcoins is currently $4.09 billion (approximately 29 billion yuan).

Currently, the Lantian Gerui case has initiated a refund procedure, and public security organs in various parts of the country have issued online registration notices for the case's fundraising participants.

Qian Zhimin's denial of Bitcoin money laundering charges in the UK, along with the victims seeking cross-border recovery, means the final outcome of the case still awaits further judicial decisions. However, the case serves as a warning to investors, reminding them to be cautious about investment traps offering high returns, carefully selecting investment projects, and avoiding similar financial risks.

Conclusion

The Lantian Gerui case is not only a serious economic crime but also reveals the insufficient financial investment risk awareness and weak legal awareness among Chinese investors. With the strengthening of domestic financial regulation and the increasing risk awareness of investors, similar cases may gradually decline. However, cross-border debt recovery, virtual currency ownership, and other issues remain challenges to be addressed in the future of financial investment.

Investors should remain rational, carefully select investment projects, understand investment risks, and take appropriate risk control measures to maximize investment safety.