A $5 billion Bitcoin fortune is at stake, but UK court says being defrauded isn’t enough to claim it

A London judge rejected Chinese fraud victims' bid to use English law to claim more than 61,000 seized Bitcoin.In an Oct. 12 ruling, High Court Justice Mark Turner sided with British prosecutors, determining that Chinese law must govern ownership claims over the cryptocurrency, currently worth approximately $5 billion.“The applicable law is Chinese law,” Turner wrote in the judgment, rejecting arguments that English property and trust principles should determine the investors' entitlement.The decision leaves thousands of victims facing a potentially difficult recovery battle, as proving they lost money to the fraud does not automatically establish ownership of the Bitcoin acquired with its proceeds.How a Chinese investment fraud became a $5 billion Bitcoin disputeThe case stems from investment schemes operated by Zhimin Qian through Tianjin Lantian Gerui Electronic Technology and associated businesses between 2014 and 2017.According to the judgment's agreed factual background, the schemes collected approximately 40.23 billion yuan (£4.1 billion) through at least 128,409 investment contracts.However, the court cautioned that the number of contracts should not be mistaken for the num...