British Chinese woman converts £5 billion fraud proceeds into Bitcoin, involving over 100,000 Chinese victims

A recent ruling in London, UK exposed a major Bitcoin money laundering case, where a British-Chinese woman is under scrutiny for allegedly converting billions of pounds of fraudulent proceeds into Bitcoin.

Chinese Scammers Use Bitcoin to Launder Money in the UK

At Southwark Crown Court in London, prosecutors have charged 42-year-old Chinese woman Jian Wen with money laundering involving a staggering £5 billion. The case stems from her employer, a fugitive from Chinese authorities, who is suspected of embezzling funds in a wealth management scam involving over 128,000 Chinese investors from 2014 to 2017.

From Working in a Chinese Takeaway to a Life of Luxury

Initially working at a Chinese takeaway in the UK and residing in a relatively modest place, Jian Wen's life took a turn in 2017 when she moved into a six-bedroom luxury home in North London with the fugitive, whose real name is Zhimin Qian. It is reported that under the alias Yadi Zhang, Qian's female companion, upon fleeing to the UK, converted the proceeds of the scam into Bitcoin.

Court Reveals Money Laundering Process

Prosecuting lawyer Gillian Jones stated that Jian Wen assisted in converting Bitcoin into cash, jewelry, luxury items, and real estate to conceal the true source of the funds.

Jones emphasized to the jury that although Jian Wen was not involved in Yadi Zhang's fraudulent activities, she did handle Bitcoin transactions on behalf of Ms. Zhang, and the jury needs to assess whether Jian Wen was aware of or at least suspected that the Bitcoin was proceeds of crime.

Defendant's Defense

Jian Wen denies all charges, claiming to have been merely a caregiver for Yadi Zhang. She asserts that she believed Ms. Zhang to be a wealthy businesswoman who accumulated wealth through jewelry businesses, real estate investments, and legitimate Bitcoin mining. The case is expected to go to trial in early March.

Are People Still Using Bitcoin for Money Laundering?

According to a report released in January by the United Nations Office on Drugs and Crime, Tether (USDT) is at the core of several fraudulent activities, including "pig-slaughtering" schemes. The report also highlights that the development of cryptocurrencies, especially USDT, coupled with other rapid technological advancements, has facilitated the long-standing practice of Southeast Asian organized crime groups laundering money through underground casinos. Despite extensive law enforcement actions against digital assets in the US and other regions, criminal groups continue to view Tether as an effective means to transfer funds, with some casinos even specializing in handling Tether (USDT).

However, the UN's statement has been met with protest from Tether, the issuer of USDT, who claims to have been actively assisting in combating illicit activities.

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