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A British-Chinese woman, Wen Jian, has been sentenced to nearly seven years in prison for laundering Bitcoin obtained from a massive $6.4 billion fraud against Chinese investors.
Prosecutors allege Jian helped convert stolen funds from fraudulent wealth schemes targeting nearly 130,000 Chinese investors between 2014 and 2017. The mastermind behind the fraud, according to prosecutors, was another woman whom Jian believed to be wealthy. Jian’s role, they say, was to act as a “front person,” converting the stolen money into Bitcoin to move it out of China and then back into cash.
Record-Breaking Bitcoin Seizure
British authorities, in a major crackdown on cryptocurrency crime, seized over 61,000 Bitcoin wallets connected to the fraud. This seizure stands as one of the largest ever by law enforcement globally. At the time of seizure in 2021, the Bitcoin was valued at around £1.4 billion (US$1.8 billion). Due to the significant rise in Bitcoin’s value, it is now worth over £3 billion (US$3.8 billion).
Jian Maintains Innocence, Blames Mastermind
Jian, 42, denied any knowledge of the underlying fraud and all three counts of money laundering against her. She claimed she was simply trying to improve her son’s life. Her lawyer, Mark Harries, painted her as a victim of a “supervillain” who “used her and abandoned her” due to her trustworthiness.
Judge Rules Against Jian, Cites Red Flags
Despite not being directly implicated in the initial fraud, Judge Sally-Ann Hales ruled that Jian “had no doubt” she was dealing with illegally obtained funds. The judge highlighted the sheer volume of money laundered and the complexity of the scheme as red flags that Jian should have recognized.
Jian Found Guilty on One Count, Sentenced to Prison
A jury found Jian guilty on one count of money laundering after a trial at Southwark Crown Court. They were unable to reach a verdict on the remaining two counts. Jian was ultimately sentenced to six years and eight months in prison for the single charge.
This case serves as a stark reminder of the potential for cryptocurrencies to be used in large-scale financial crimes. It also highlights the increasing efforts of law enforcement agencies around the world to track and disrupt such activities.
