Behind the 40.2 billion fraud case: Why Bitcoin has become a Money Laundering tool

A woman spent 8 years laundering 40.2 billion RMB of scam funds into 5 billion pounds of Bitcoin, and was finally caught in the English countryside. This is not a movie plot, but a true case that was just sentenced.

How the Scam Upgraded from Hefei to London

Qian Zhimin's story began in 2013—at that time, she was involved in pyramid schemes in Anhui, using a pseudonym to evade capture. In 2014, she changed cities and identities, opening an electronic technology company called 'Lantian Ge Rui' in Tianjin. The company did not have a financial license, yet she forcefully launched financial products, promising high returns.

This trick works very well. She holds promotional meetings across the country to attract people, and investors keep getting hooked, with funds flowing in continuously. Especially those retired seniors who want to make quick money are intimidated by “Sister Hua Hua”'s mysterious aura and network, pouring their pension money into it.

The promotional event in October 2016 was the most outrageous – she appeared wearing a mask and only allowed investors with over 6 million to participate, collecting phones on site. She spoke dazzlingly, and the investors even lifted her up in celebration. At that moment, no one knew that this money would ultimately flow into a cryptocurrency wallet.

Bitcoin, the best money laundering tool

What to do with the money raised? She quietly bought about 195,000 Bitcoins through an account under the name of a puppet legal person called Ren Jiangtao. Among them, 61,000 she privately controlled.

In July 2017, the scam exploded. 40.2 billion in illegal fundraising, with 128,000 victims spread across 31 provinces, cities, and autonomous regions nationwide. Many are public officials and elderly people, some of whom are too afraid to report it.

But Qian Zhimin was well-prepared—he obtained a passport under a false identity, carrying a notebook filled with private keys, and escaped from China to Thailand, then to the UK.

This is the double-edged sword of Bitcoin: decentralization, strong anonymity, and zero-cost cross-border transfers. For normal users, it means freedom; for criminals, it's heaven. It was through this characteristic that a domestic fraud case was turned into an international money laundering case.

Low-key? Not a chance.

When he arrived in London, Qian Zhimin should have been shrinking back, but instead, he got hyped up.

She spent £36 million in one go to buy two luxury apartments in London (Knightsbridge and Kensington), registered in the name of a local. Renting an apartment in North London for £16,000 a month, paid for six months in advance. Jewelry stores, luxury watches, five-star hotels, trips across Europe… Money was spent as if it were free. Two watches alone cost £120,000, equivalent to 1.12 million yuan.

This extravagant spending alarmed the bank. Large cash transactions were reported, and the police began to keep a watch. In 2018, she attempted to buy a £23.5 million mansion in London with Bitcoin, but the transaction documents were vague, and ultimately it fell through, and she even proactively reported it to the police.

In October of the same year, the police raided a residence in North London.

Key to the Pursuit: Bitcoin has become evidence

The police found a notebook containing 61,000 Bitcoin private keys. However, Qian Zhimin escaped initial inspection due to a leg injury and immediately went missing.

For the next six years, she hid in various places in England—from the suburbs of London to the northern countryside, renting remote cottages and paying rent in cash. To make ends meet, she sold small amounts of Bitcoin for cash, but the UK's regulations on cryptocurrency became increasingly strict, and her attempts to transfer funds failed multiple times.

The police did not give up. They cross-tracked data on the Bitcoin transaction chain + property registration records. In May 2021, they decrypted the device and confirmed the value of those 61,000 Bitcoins—rising from several hundred million yuan in 2017 to 5 billion pounds (approximately 50 billion yuan).

This motivated the police's pursuit. They monitored her shopping records, and when she bought gold antiques at a jewelry store in Manchester, the staff reported the suspicious transaction — this helped the police pinpoint the location.

In April 2024, the police arrested her at a bed and breakfast in Yorkshire. Additional private keys were found in the hidden pocket of her pants. Eight years of fleeing came to an end.

Why This Case Is Significant

1. Bitcoin has become a link in the crime chain: From domestic fraud → international money laundering → asset concealment, the anonymity of Bitcoin has been fully utilized.

2. On-chain data is traceable: Although Bitcoin claims to be anonymous, all transactions are on-chain, and the police only need to crack one wallet address to trace all the flow of funds. This is a major flaw of Bitcoin.

3. Extravagance Exposed: Ironically, Qian Zhiming was not caught up by technology, but rather exposed by her own luxurious lifestyle. If she had truly kept a low profile, the British police might never have tracked her down.

4. Successful Case of Cross-Border Law Enforcement: This case demonstrates the effectiveness of judicial cooperation between China and the UK. In the future, similar extraditions for cross-border crimes may become the norm.

The Cost of Victims

The most heartbreaking thing is that among the 128,000 victims, many are retired elderly people. Their retirement funds have gone down the drain, and their lives have collapsed as a result. A compensation of 34.1 billion has been recovered, but the remaining part will have to be allocated through civil cases.

Qian Zhimin pleaded guilty in September 2025 and was sentenced to 11 years and 8 months on November 11. Accomplice Wen Jian received 6 years and 8 months, and housekeeper Cheng Fuling received 4 years and 11 months.

The question left by this case is: In an era where cryptocurrencies like Bitcoin are becoming increasingly popular, how do we balance innovation and risk? How strict should regulation be? How should investors identify high-risk projects?

Perhaps the story of the “most visionary scammer in history” can serve as a wake-up call for everyone.