UK High Court Rules That Chinese Law Applies to Ownership Claims Over More Than 61,000 Bitcoins in the "Qian Zhimin Case," With Funds Involved Worth About £4.1 Billion

BlockBeats news, October 13 — A judgment released by the UK National Archives shows that the High Court of England and Wales ruled on October 12 in the "Blue Sky Gerui case" that Chinese investors' property rights claims over the Bitcoin involved should be governed by Chinese law rather than English law. The case involves more than 61,000 Bitcoins and is an important part of the billions of pounds in criminal proceeds recovered by UK law enforcement.

The judgment stated that the investment fraud related to the case was carried out in China between 2014 and 2017, with total funds involved amounting to approximately RMB 40.228 billion (about £4.1 billion). The funds were used to purchase assets including Bitcoin, and the Bitcoin involved was later brought to the UK. UK police seized related devices and some access keys in 2018, and the subsequently seized assets included more than 61,000 Bitcoins.

The court held that the investors' location, the place where the misrepresentations occurred, the place where the funds were paid, and the place where the Bitcoin was initially purchased were all mainly located in China, and therefore the relevant property rights should be determined in accordance with Chinese law. The court also rejected the investors' arguments seeking to establish rights through English law and related asset tracing rules.

It should be noted that this ruling only addresses which country's law should apply to the relevant rights claims. It did not make a final determination on whether each investor owns the Bitcoin involved, nor did it decide how the assets should ultimately be distributed. The specific rights under Chinese law and relevant evidence still need to be examined subsequently.