British Woman Sentenced to Nearly Seven Years in Prison for Bitcoin Laundering in $6.4 Billion Chinese Scam
Wen Jian, 42, was convicted of laundering significant amounts of Bitcoin associated with an alleged multi-billion-dollar investment scam in China.
A woman accused of converting bitcoin into cash and property to help conceal the profits of a $6.4 billion fraud received a nearly seven-year sentence on May 24 for money laundering after a trial in a London court.
Wen Jian, 42, was found guilty of laundering significant amounts of Bitcoin linked to an alleged multi-billion-dollar investment fraud in China.
Prosecutors claimed that Ms. Wen assisted in concealing the source of money allegedly stolen from almost 130,000 Chinese investors through fraudulent wealth schemes between 2014 and 2017.
She was not implicated in the primary fraud, which prosecutors asserted was orchestrated by another woman known to Ms. Wen as Zhang Yadi. Ms. Wen believed Ms. Zhang was financially independent.
Ms. Zhang fled Britain in 2020, and her current location is unknown.
Judge Sally-Ann Hales characterized Wen’s offense as “sophisticated and involving significant planning,” noting that Ms. Wen was aware she was dealing with criminal proceeds.
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During the trial at Southwark Crown Court in March, Ms. Wen denied three counts of money laundering, claiming she was unaware of the criminal origins associated with bitcoin. However, she was found guilty on one count, resulting in a sentence of six years and eight months in prison.
As part of the investigation, British authorities confiscated wallets containing over 61,000 bitcoins, marking one of the largest cryptocurrency seizures by law enforcement globally. When authorities gained access in 2021, the 61,000 bitcoins were valued at approximately $2 billion back then. Today, their value has surged to over $4 billion, underscoring the magnitude and importance of the assets involved.
Notable Cases of Cryptocurrency Fraud
Ms. Wen’s case is one of numerous high-profile incidents involving substantial illicit cryptocurrency transactions.
Industry Concerns
The use of cryptocurrencies in illicit activities has raised concerns among regulators and industry leaders. A January report by blockchain analysis firm Chainalysis revealed that $24.2 billion worth of crypto transactions in 2023 were conducted through illicit addresses. Bitcoin represented nearly a quarter of this volume, remaining the most used cryptocurrency for illicit purposes.
“Certain forms of illicit cryptocurrency activity, such as darknet market sales and ransomware extortion, continue to primarily occur in Bitcoin,” the report mentioned.
“Elliptic researchers received offers from more than 90 China-based companies to supply fentanyl precursors, 90 percent of which accepted cryptocurrency payments,” the report stated.
Reuters and Naveen Athrappully contributed to this report.
