Add as a preferred source on GoogleUK Court Rules Chinese Law Governs Claims to 61,000 Seized Bitcoin
The Oct. 12 decision settles which country’s law applies, but not who owns the Bitcoin or how the assets will be distributed.
The U.K. High Court ruled Monday that Chinese law governs claims involving more than 61,000 seized Bitcoin (BTC), a decision that sets the legal framework for restitution claims but does not determine ownership or distribution.
The ruling was handed down at 5:30 a.m. ET (09:30 UTC) in the case involving Qian Zhimin and assets recovered by British police. The court held that the existence and content of any proprietary rights must be assessed under Chinese law because the alleged investment schemes, investor payments and Bitcoin purchases were centered in China.
The decision does not establish whether individual claimants own any of the Bitcoin, order the assets transferred or determine how any recovery will be divided. The court also has not ruled on the substance of Chinese law as it applies to individual claims.
The case’s agreed facts link at least 128,409 investment contracts to schemes operated between 2014 and 2017. More than 100,000 BTC were purchased through a Huobi account during that period before Qian moved to England.
The next stage will require the parties to address the content and application of Chinese law in the continuing U.K. civil-recovery proceedings.
Riza Dagoc
Riza Dagoc reports on regulation, investing and the digital-asset business for TokenPost. Send corrections or tips to info@tokenpost.com.