A recent report by the Financial Times reveals that a British-Chinese woman, Jian Wen, has been sentenced to six years and eight months in prison for her involvement in Bitcoin (BTC) laundering allegedly derived from a £5 billion fraud in China.
Wen, 42, was convicted in March of one count of money laundering on behalf of her former boss, Yadi Zhang, a Chinese woman. THE sentencing took place on Friday at Southwark Crown Court in London.
London mansion raid uncovers £3bn Bitcoin stash
According to the report, in 2018, the London Metropolitan Police raided Wen and Zhang’s mansion in Hampstead. During the raid they seized devices containing a staggering 61,000 Bitcoins, currently valued at over £3 billion. This is notably one of the largest seizures cryptocurrency races never before achieved by any law enforcement agency worldwide.
Authorities had initially investigated Wen over an attempt to purchase a London mansion using Bitcoin. British prosecutors have claimed that Wen’s former boss, Zhang, managed a fortune of £5 billion. fraudulent scheme in China, which resulted in the theft of funds.
While Zhang’s lawyer maintained her innocence, Wen was found guilty of laundering a portion of the profits between 2017 and 2022 after two trials and acquittals on 10 other charges. It is important to note that Wen was not involved in the initial alleged fraud.
However, Judge Sally-Ann Hales, KC, stressed that Wen had full knowledge of dealing with the proceeds of crime and described the offense as “sophisticated with significant planning” involved.
Wen, who allegedly helped convert Bitcoin into cash, jewelry, luxury items and property, pleaded not guilty and has always denied any knowledge of the theft of his employer’s funds.
Letter urges UK-China talks
Mark Harries KC, Wen’s lawyer, described her as a “fragile and desperate woman” who was deceived and manipulated. However, the judge disagreed with this characterization, stating that she did not view Wen as a victim.
Wen admitted to controlling a Bitcoin wallet but claimed ignorance regarding the source of the cryptocurrency. The court heard Wen had not seen her 16-year-old son for 26 months and has been in detention since March 2022.
Between 2017 and 2020, Wen used several intermediaries to convert cryptocurrency into various assets.
One of these middlemen was Michael James Burke, a Dubai-based real estate agent, who allegedly helped Wen sell Bitcoin through his companies in Seychelles and Switzerland and facilitated the purchase of properties in Dubai.
The Metropolitan Police are pursuing civil recovery proceedings to seize the full amount of confiscated funds and collaborates with the Chinese authorities in this matter.
“The Chinese side has already engaged in international law enforcement cooperation with the United Kingdom regarding this matter,” the Chinese Foreign Ministry said in response to the Financial Times.
The ministry added that law enforcement agencies from both countries are actively working together to pursue fugitives and recover their assets. Victims of the alleged £5 billion scam in China have also submitted a letter to the Foreign Office in Beijing, calling for negotiations with the UK government to get back the Bitcoin purchased with their money.
At press time, the market’s largest cryptocurrency, BTC, is trading at $68,150 after falling to consolidate above the key $70,000 mark.
Featured image from Shutterstock, chart from TradingView.com
