UK High Court rules that proprietary claims over involved in the Qian Zhimin case are governed by Chinese law
BIBIBI
AT A GLANCE
The High Court of England and Wales held that Chinese law applies to proprietary claims concerning the bitcoins involved in the case; the scope of the victims' recovery remains to be determined in subsequent proceedings.
Article
【Chinese Victims in the Qian Zhimin Case May Only Be Able to Recover Principal and Interest】
Amid the cross-border asset recovery dispute over the more than 61000 bitcoins involved in the illegal fundraising case involving Tianjin Lantian Gerui in China, a British court has issued an important ruling. At local time October 12, a judgment obtained by Caixin from the High Court of England and Wales showed that the High Court of England and Wales held that Chinese investors' proprietary claims to the bitcoins involved in the case should be determined under Chinese law rather than English law. This means that approximately 16000 Chinese victims who have participated in the recovery proceedings in the UK may be unable to share in the huge appreciation generated by the surge in Bitcoin prices under English law, and may recover no more than their principal and interest. Qian Zhimin purchased Bitcoin through Huobi in 2014 at an average price of approximately 2815 yuan CNY. Bitcoin prices subsequently rose sharply. Despite experiencing multiple bouts of extreme volatility, as of October 12, 2026, the price of Bitcoin was around CNY 560000 yuan, approximately 200 times Qian Zhimin's average purchase price at the time. At the hearing held in July 7 to 9, the Director of Public Prosecutions argued that Chinese law should apply, and the litigation receivers of Tianjin Lantian Gerui Electronic Technology Co., Ltd. supported this position, while counsel representing the Chinese individual investors argued that English law should apply, or that the laws of both China and the UK should apply concurrently. The court ultimately supported the position of the UK prosecuting authorities.
Key points
01
The materials state that the dispute involves more than 61000 bitcoins involved in the Tianjin Lantian Gerui illegal fundraising case.
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The materials state that the High Court of England and Wales held that Chinese investors' proprietary claims to the bitcoins involved in the case should be determined under Chinese law rather than English law.
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Approximately 16000 Chinese victims have participated in the UK recovery proceedings.
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The materials state that the victims may be unable to share in the appreciation generated by the rise in Bitcoin prices and may recover no more than their principal and interest; this statement is uncertain.
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The materials state that Qian Zhimin purchased Bitcoin through Huobi in 2014 at an average price of approximately 2815 yuan CNY。
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The materials state that, as of October 12, 2026, the price of Bitcoin was approximately CNY 560000 yuan, approximately 200 times the above-mentioned average purchase price.
07
The materials state that, at the hearing in July 7 to 9, the Director of Public Prosecutions argued that Chinese law should apply, the litigation receivers of Tianjin Lantian Gerui Electronic Technology Co., Ltd. supported that position, and counsel for the Chinese individual investors argued that English law should apply or that the laws of both China and the UK should apply concurrently.
08
The materials state that the court ultimately supported the position of the UK prosecuting authorities.
AI-assisted interpretation
The following is analysis, separate from reported facts. Verify important claims independently.
This ruling addresses which country's law should be used to determine whether investors have proprietary rights in the bitcoins involved in the case. The materials state that the court chose Chinese law; accordingly, whether victims participating in the UK recovery proceedings can obtain the appreciation in Bitcoin's value will be assessed under the Chinese legal framework. However, the materials only state that they “may” recover no more than their principal and interest, and do not provide a final distribution ruling.
Why it matters to readers
A large number of bitcoins are involved in the case, and the choice of applicable law may affect the scope of assets that victims can claim, particularly the distinction between principal, interest, and gains from the appreciation of Bitcoin.
Beginners should distinguish between “Chinese law definitely applies” and “how much can ultimately be recovered”: the former is the conclusion of the ruling described in the materials, while the latter remains a possible outcome, and the compensation plan cannot be deemed finalized on this basis.
Risks and unknowns
The materials do not include the original text of the High Court of England and Wales judgment or a court link, so the full ruling cannot be independently verified.
It remains unclear whether the ruling will be appealed, amended, or overturned.
The ultimate ownership, disposition, and timetable for the Bitcoin involved in the case have not yet been determined.
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It remains undetermined whether victims in China will ultimately recover their principal, interest, or other proceeds, as well as the specific amount and distribution plan.
The materials do not specify the source of the relevant Bitcoin price data.
Related concepts
Proprietary claims
This term is not in the glossary yet. Browse related concepts in the glossary.
