The compensation mechanism for the 61,000 Bitcoin money laundering case has been questioned, and Chinese victims have launched a legal challenge in the UK.

Victims of a Chinese investment fraud case are challenging a compensation arrangement involving approximately 61,000 bitcoins in a UK court. Representatives have filed an application with the High Court to reject a scheme using Chinese compensation mechanisms, arguing that it could allow British authorities to retain substantial gains from asset appreciation. The bitcoins, seized by British police in a money laundering investigation in London, are currently valued at approximately £3.2 billion (about $4.3 billion). The law firm Candey, representing about 5,700 victims, is reportedly objecting, arguing that the current compensation scheme does not guarantee fair compensation. The fraud, orchestrated by Qian Zhimin, involved over 128,000 Chinese investors, with proceeds converted into bitcoins and transferred overseas between 2014 and 2017. British prosecutors have stated that some claims could result in a minority of victims and those funding the litigation receiving compensation exceeding their actual losses. (FT)