Chinese ‘Cryptoqueen’ Sentenced to 11 Years for Orchestrating £4.2 Billion Bitcoin Ponzi Scheme
Qian Zhimin, dubbed the “Cryptoqueen” of China, has been sentenced to 11 years and eight months in a UK court for running one of the largest cryptocurrency Ponzi schemes on record. The scheme defrauded approximately 120,000 investors out of £4.2 billion (equivalent to $5.6 billion), making it one of the most significant individual fraud cases in the history of digital assets.
Operating under the guise of a legitimate business called Lantian Gerui, Qian launched her operation in 2013 in China. The company promised lucrative returns from cryptocurrency mining and investments in health technology. However, prosecutors revealed that the entire operation was a textbook Ponzi scheme—early investors were paid with the money from new recruits, rather than from any legitimate profits.
The scheme particularly targeted elderly Chinese citizens, capitalizing on their sense of patriotism and social isolation. Lavish marketing events were held in prestigious locations, including the Great Hall of the People in Beijing. These gatherings painted the investment as a nationalistic cause, encouraging people to contribute to making China a global leader in technology. Victims were lured by small, consistent returns at first, which led many to borrow money—sometimes at interest rates as high as 8%—in order to increase their investment.
One victim, Mr. Yu, shared that he and his wife invested 120,000 yuan (about $16,800), which they ultimately lost when the scheme unraveled. “They told us this was to help China rise. Our patriotism blinded us,” he said.
When Chinese authorities began investigating the operation in 2017, Qian fled to the United Kingdom using forged identification. She settled in an upscale Hampstead mansion in London, paying over £17,000 monthly in rent and posing as a wealthy antiques heiress. During her time in the UK, the value of her Bitcoin holdings, originally acquired using stolen funds, skyrocketed more than 20 times.
Her assistant, Wen Jian, later testified that Qian spent her days shopping online and playing video games, while the victims of her fraud struggled to recover their losses. Investigators also found a personal diary in which Qian fantasized about purchasing a castle in Sweden and becoming the queen of Liberland, a self-declared micronation located between Croatia and Serbia.
Authorities became suspicious when her assistant attempted to purchase another high-end property in Totteridge without being able to justify the source of the funds. A subsequent raid on Qian’s Hampstead residence in 2021 led to the UK’s largest-ever cryptocurrency seizure. Law enforcement discovered hard drives containing tens of thousands of Bitcoin—valued at billions of pounds—hidden within the property.
This case unfolded during a period of unprecedented fraud in the cryptocurrency sector. In just the first half of 2025, investors lost more than $2.47 billion to various crypto-related scams and hacks, already surpassing the total fraud losses for the entire year of 2024. Rug pull schemes alone accounted for nearly $6 billion in early 2025, a staggering increase from $90 million in early 2024.
These frauds have evolved in complexity and scale. While 2024 saw most scams centered around decentralized finance (DeFi) platforms, 2025 has seen a shift toward memecoin projects, which are often promoted through social media hype with little to no underlying value. Wallet breaches have also surged, resulting in $1.7 billion in lost funds, while phishing attacks claimed $410 million across 132 reported incidents.
AI-driven scams are another growing concern. Deepfake technologies have been used to convincingly imitate public figures like Elon Musk and Donald Trump, leading to an additional $200 million in investor losses. Major security breaches, such as the Bybit hack and the Cetus Protocol exploit, have further contributed to the crisis, with those two incidents alone causing $1.78 billion in financial damage.
The sentencing of Qian Zhimin is seen as a landmark victory for global law enforcement in the ongoing battle against cryptocurrency fraud. It demonstrates the reach and seriousness with which authorities are now treating crimes involving digital assets. The UK’s ability to seize such a vast amount of Bitcoin and bring Qian to justice highlights the increasing international cooperation in tackling crypto-related financial crimes.
Looking ahead, the crypto sector faces mounting challenges in restoring investor trust. The rapid adoption of blockchain technology has outpaced the development of regulatory frameworks, leaving room for exploitation. Governments worldwide are now accelerating efforts to introduce stricter regulations, enhance transparency, and implement consumer protection measures.
Financial literacy is also becoming a key area of focus. As scams grow more sophisticated, it’s critical that investors are equipped with the knowledge to identify red flags and conduct due diligence before committing funds. Educational campaigns, both public and private, are being rolled out to address this gap.
At the same time, blockchain security firms are innovating rapidly to detect and prevent fraudulent activity. Advanced analytics, AI-driven monitoring, and real-time auditing tools are being developed to track suspicious behavior and flag potential threats. While the technology that enables crypto scams continues to evolve, so too does the technology designed to stop them.
The Qian case also raises ethical questions about the role of influencers and marketing in crypto promotion. As seen in this and other major frauds, aggressive and sometimes deceptive promotional tactics play a central role in luring unsuspecting investors. Regulatory agencies are beginning to crack down on misleading advertising in the crypto space, requiring greater transparency and accountability from promoters.
In summary, the downfall of the so-called Cryptoqueen serves as a cautionary tale in an era where digital currencies are reshaping global finance. While innovation in the space continues at an astonishing pace, the risks remain high. Investors, regulators, and technology providers must work together to build a safer, more trustworthy crypto ecosystem.