The UK High Court has issued a landmark ruling in a case concerning the ownership of more than 61,000 Bitcoin (BTC) seized in connection with a large-scale investment fraud in China.
According to a court ruling published today by the UK National Archives, claims by Chinese investors who were victims of fraud regarding their ownership rights in Bitcoin will be assessed under Chinese law, not British law.
The decision is seen as a significant development in the legal process that will determine the future of billions of pounds worth of Bitcoin held by British authorities.
The Future of Over 61,000 Bitcoins is Being Discussed
The case known as Blue Sky Green centers around a large-scale investment fraud that took place in China between 2014 and 2017.
According to court documents, approximately 40.23 billion yuan (approximately £4.1 billion) was collected from investors as part of these fraudulent activities.
Some of the funds raised were converted into various assets, primarily Bitcoin, and these cryptocurrency assets were subsequently moved to the UK.
British police seized the relevant electronic devices and some access keys in operations carried out in 2018. As a result of ongoing investigations, more than 61,000 Bitcoins were recovered.
The investors who were victims of the fraud have launched a legal battle to have the assets returned to them, claiming ownership rights to these Bitcoins.
Court Points to Chinese Law
The UK High Court stated that the investors were located in China, that the fraudulent activities took place there, that the money transfers were made in China, and that China was the country where the Bitcoins were first purchased.
Therefore, the court ruled that Chinese law should be applied in determining ownership rights over the Bitcoins in question.
In addition, attempts by investors to assert claims based on property and asset tracking regulations under British law were also rejected.
However, the decision does not mean that more than 61,000 Bitcoins will be transferred directly to China or to the affected investors.
The court only determined which country’s law would apply to the dispute. Whether investors actually own rights to the Bitcoins and how the assets will ultimately be distributed has not yet been decided.
*This is not investment advice.
