UK moves closer to seizing 61,000 BTC worth $5 billion after court ruling

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UK seizing 61,000 BTC

Why the court applied Chinese law

Thousands of victims have filed claims seeking ownership of a portion of the seized Bitcoin. To recover the assets, they must establish property rights to a specific share of the cryptocurrency.

The judge sided with British prosecutors, finding that the fraudulent activities, signing of contracts and transfer of funds all took place in China. He noted that this was also where investors suffered their financial losses.

English law had been considered more favorable to the claimants because it offered a stronger basis for asserting ownership rights over the Bitcoin. However, the court ruled that Chinese law should apply.

The decision does not mean that the cryptocurrency will automatically become government property. Questions concerning the application of Chinese law and whether victims have enforceable property rights will be addressed at subsequent hearings.

Law firm Fieldfisher, which represents the claimants, intends to appeal the ruling. British prosecutors had previously also raised the possibility of compensating victims through a special program in China.

Fate of seized Bitcoin remains uncertain

The 61,000 seized BTC are valued at approximately $5 billion, based on a Bitcoin price of around $83,200. In 2025, when the assets were worth roughly $7 billion, British officials discussed the possibility of using the funds to help cover the budget deficit.

However, any decision on the cryptocurrency's future depends on the outcome of the legal proceedings. Even after the applicable law has been determined, claimants will still need to prove their rights to the assets.

Amid the legal battle over the recovery of stolen cryptocurrency, another crime targeting a digital asset holder was reported in the UK. Three knife-wielding attackers broke into a crypto trader's home, tied him up and threatened to kill him unless he provided access to his wallets.

According to the victim, the attackers transferred approximately $40,000 from his main wallets and another $720,000 from a Ledger hardware wallet. Total losses amounted to roughly $760,000, although the trader initially estimated the damage at nearly $800,000.

Earlier, we reported that authorities in Greece uncovered an alleged cryptocurrency pyramid scheme that raised approximately $8 million from 10,000 investors. Police arrested 17 people, including military personnel, two of whom are suspected of organizing the scheme.

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