Jian Wen, a former takeaway worker living in north London, was found guilty of one count of money laundering after being found in possession of Bitcoin worth more than 2, $5 billion (£2 billion) in 2018.
Jian Wen helped a Chinese fugitive known to Wen as Zhang Yadi, real name Qian Zhimin, launder BTC funds.
The Bitcoin laundering affair
Wen was found with Bitcoin valued at more than £2 billion, which she had helped convert into assets such as multi-million pound homes and jewelry. Although she was living in a flat above a Chinese restaurant in Leeds when she first became involved in criminal activity, Wen's lifestyle saw a drastic improvement.
Wen's attempt to legitimize his new wealth by claiming to have made millions from legitimate Bitcoin mining was not believed. She also struggled to pass money laundering checks when trying to buy expensive properties in London.
Investigation revealed that another suspect named Zhang Yadi is the mastermind behind the fraud. Prosecutors alleged that Wen helped Zhang convert stolen funds amassed through fraudulent wealth management schemes targeting thousands of Chinese investors.
During the investigation, British police seized wallets containing more than 61,000 BTC, marking one of the largest cryptocurrency seizures in the world. Early estimates valued Bitcoin funds at around £2 billion, but due to price fluctuations this figure has since increased to around £3.4 billion.
The Crown Prosecution Service (CPS) has obtained a freezing order from the High Court as part of a civil recovery investigation which could lead to the confiscation of Bitcoin.
Wen found guilty of money laundering
During the trial, prosecutor Gillian Jones revealed that Zhang entered Britain in 2017 with a false passport, as part of an investigation by Chinese authorities into the fraud. Zhang sought to convert the stolen funds, initially transformed into Bitcoin for transfer out of China, and used Wen as a “front person.”
Her defense presented her as a victim deceived by Zhang, emphasizing her intention to provide a better life for her son. However, the prosecution argued that Wen should have been aware of the illegal source of the funds, given Zhang's criminal activities and efforts to evade Chinese authorities. Despite this, jurors found her guilty of one count of money laundering.
Andrew Penhale, Chief Prosecutor of the CPS, highlighted the growing use of cryptocurrencies by organized crime to hide and transfer assets. He said this case illustrates the significant income available to these fraudsters.
Detective Chief Superintendent Jason Prins, who led the investigation, highlighted the international nature of the operation, highlighting how criminals exploit cryptocurrencies for illicit purposes.
Wen is scheduled to be sentenced on May 10 while the search for Zhang continues while she remains at large.
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