Chinese 'cryptoqueen' who stole $5.6B from pensioners faces jail
What's the story
Qian Zhimin, a Chinese national dubbed the "Cryptoqueen," is due to be sentenced for her role in a massive cryptocurrency fraud scheme. The case involved more than CNY 40 billion ($5.6 billion, £4.2 billion) stolen from more than 100,000 Chinese pensioners. Qian had fled China in September 2017 and settled in a mansion in Hampstead, north London.
Deception
Qian embezzled money to fund her lavish lifestyle
Qian's company, Lantian Gerui, promised high-tech health products and cryptocurrency mining. Instead, she embezzled the money. To fund her lavish lifestyle in London, where she rented a mansion for over £17,000 a month, Qian converted her Bitcoin holdings into cash. She posed as an heiress of antiques and diamonds to cover up her activities.
Aspirations
Ambitious plans for the future
While enjoying her newfound wealth, Qian also sketched out ambitious plans for the future. These included starting an international bank, buying a Swedish castle, and winning over a British duke. However, her attempt to buy a huge house in Totteridge Common raised eyebrows and triggered a police investigation when her assistant couldn't explain her boss' wealth.
Evidence
Police raided her rented property in Hampstead
The police raided Qian's rented property in Hampstead and discovered hard drives and laptops containing tens of thousands of Bitcoins. This was the single largest cryptocurrency seizure in UK history. The company through which money was embezzled, Lantian Gerui, had been set up four years earlier in China by Qian. It claimed to use investors' money for Bitcoin mining and investing in cutting-edge tech devices.
Investor exploitation
Many people were persuaded into the scheme
Qian was known for her manipulative skills and was able to persuade many people into the scheme. Her company exploited the loneliness of middle-aged and elderly Chinese by promising high profits. One investor, Mr. Yu, said he never suspected anything was wrong because the firm paid him a portion of his apparent earnings every day. This made many feel confident enough to invest more money in the company.
Arrest details
Qian was very secretive about her business
Qian was very secretive. She communicated with clients mostly through poems she posted on her blog. A Chinese police investigation into Lantian Gerui in mid-2017 marked beginning of the end for her scheme. When she was arrested in York, England last April, police found four other people at the house, Southwark Crown Court heard at the start of her sentencing hearing yesterday. All four were brought to work for Qian in roles like shopping and security, and were employed illegally.