Authorities seize record amount of bitcoin obtained in woman's shocking criminal scheme: 'Years of painstaking work'

A woman has pleaded guilty in what is being described as one of the world's largest cryptocurrency seizures.

What's happening?

According to The Guardian, Zhimin Qian, also known as Yadi Zhang, pleaded guilty in September in a United Kingdom court to fraud charges stemming from a scheme she ran in China between 2014 and 2017. Authorities raided a mansion in Hampstead in 2018 and "seized devices from Qian holding 61,000 bitcoins, worth more than £5 billion at current prices," per the outlet. 

Qian reportedly defrauded 128,000 people before leaving China for England with a fake St. Kitts and Nevis passport and began laundering the ill-gotten gains with the help of Jian Wen, a food delivery worker. To do this, the pair bought property, including cryptocurrency, to hide and transfer the stolen assets.

"This is one of the largest money-laundering cases in UK history and among the highest-value cryptocurrency cases globally," Will Lyne, head of the Metropolitan Police Service's economic and cybercrime command, said. "I am extremely proud of the team." 

Why is this cryptocurrency bust notable?

The massive bust is a sign that cryptocurrency may no longer be a reliable means of money laundering for scammers seeking to conceal huge amounts of stolen assets. 

Because transfers of bitcoin and other forms of cryptocurrency can be operated with some degree of privacy, tracing them can be challenging. Relatedly, crypto has been a popular means for criminals to launder funds. 

"Bitcoin and other cryptocurrencies are increasingly being used by organized criminals to disguise and transfer assets, so that fraudsters may enjoy the benefits of their criminal conduct," Robin Weyell told the BBC, speaking on behalf of the prosecution in the case against Qian. "This case, involving the largest cryptocurrency seizure in the UK, illustrates the scale of criminal proceeds available to those fraudsters."

The outcome of this investigation is good news for anyone hoping authorities will be able to curtail a rise in large-scale laundering via crypto. Because the energy-hungry technology can come with environmental impacts, it may also be a welcome development for those concerned by data centers' high use of electricity and water.

Positive steps have been taken to ensure that crypto operations can be increasingly powered by renewable energy sources and use less water for cooling. But with much of its energy demand still being met by dirty fossil fuels, the environmental impacts of crypto remain relevant considerations.

What's being done about fraud?

Law enforcement around the globe appears to be getting better at cracking down on cases of cryptocurrency being used to hide and move stolen funds. 

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"Today marks the result of years of painstaking work," said Isabella Grotto, per The Guardian. Grotto, who led the investigation into Qian, continued, "I am immensely proud of the investigation team and our partners who have worked tirelessly on this case."

UK Security Minister Dan Jarvis said in a statement, per the BBC, "Money laundering erodes trust, undermines our economy, and fuels the rise of serious organized crime."

When committed via cryptocurrency, it's also possible for the crime to strain power grids and consume water sources — so this major disruption of unnecessary, large-scale, criminal transactions may ultimately be a win for environmentalists as well.

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