UK High Court Rules Chinese Law Governs Claims to Seized 61,000 Bitcoin

London's High Court has ruled that Chinese law, rather than English law, governs the property claims of victims seeking to recover 61,000 Bitcoin seized by the British government. Justice Mark Turner rejected arguments to apply English law or a mixed legal framework, noting that the victims handed over their funds and entered into the underlying contractual arrangements in China, where the harm took place.

The dispute originates from an investment fraud conducted by Zhimin Qian between 2014 and 2017. British law enforcement later seized the cryptocurrency as part of a money-laundering inquiry. Claimants had argued in March against a Chinese redress mechanism, contending it could leave British authorities holding the bulk of the asset's price gains, and had pushed for English law in hopes of asserting direct property rights over the tokens rather than settling as unsecured creditors.

The ruling does not determine the final distribution or ownership of the assets. The litigation will remain before London's High Court rather than transferring to China, with upcoming hearings scheduled to hear expert evidence on Chinese legal principles to evaluate whether the claimants hold valid property rights. Law firm Fieldfisher, representing the victims, is seeking an appeal against the decision.