Chinese authorities have initiated proceedings to confiscate approximately $5 billion (approx. 6 trillion KRW) worth of Bitcoin (BTC), alongside millions of XRP and Dogecoin (DOGE), linked to a massive investment fraud case.

According to blockchain media outlet U.Today on the 14th (local time), the Tianjin No. 2 Intermediate People's Court has accepted a confiscation application for seized cryptocurrencies belonging to Wen Zhimin, who was convicted of money laundering.

The court announced on the 13th that the application was officially filed on September 28. The assets specified by Chinese prosecutors for recovery include 61,896.41552945 Bitcoins. Based on recent market prices, their value is estimated at roughly $5 billion. Additionally, the asset list includes XRP, Dogecoin, Bitcoin Cash (BCH), Bitcoin Gold (BTG), and Bitcoin SV (BSV).

Alongside cryptocurrencies, the confiscation request includes US dollars, euros, British pounds in cash, jewelry, bank deposits, and investment portfolios. The Dogecoin holdings have reportedly already been liquidated by British law enforcement and deposited into an interest-bearing account.

The proceedings stem from a massive investment fraud scheme orchestrated through Tianjin Lantian Gerui Electronic Technology. Chinese prosecutors state that between April 2014 and August 2017, Wen Zhimin illegally raised approximately 40.38 billion yuan by selling fraudulent investment products promising high returns. The scheme affected more than 102,000 victims, resulting in estimated losses of about 19.98 billion yuan.

Investigators believe that a significant portion of the raised funds was used to repay earlier investors, operate fake investment ventures, and purchase assets. The acquired assets included Bitcoin, real estate, vehicles, and jewelry. Wen fled China for the UK in 2017, after which British authorities seized the cryptocurrency holdings. A UK court sentenced Wen to 11 years and 8 months in prison for money laundering in November 2025.

Market attention has now shifted to the ultimate destination of the seized Bitcoin. On the 12th, the UK High Court ruled that Chinese law should apply to a claim filed by victims demanding the return of the seized cryptocurrencies. However, this decision does not finalize the ownership of the assets. A key remaining issue in future proceedings will be whether the victims can prove enforceable rights to the cryptocurrencies.

This ruling may also influence whether victims are compensated based on their principal losses at the time of the fraud or if they can claim the subsequent appreciation in Bitcoin's price. However, the UK court has not yet finalized the scope of this determination.

Regarding the confiscation proceedings, the Chinese court has opened a six-month period for interested parties to participate. Stakeholders, including Wen's relatives and victimized investors, can take part in the process during this window. Consequently, legal battles are expected to continue as confiscation procedures in China and ownership rulings in the UK intertwine over the final destination of the massive seized cryptocurrency and the scope of victim recovery.

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