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Crypto Queen Accomplice Sentenced for Bitcoin Laundering
Jian Wen was sentenced to six years and eight months in prison for her involvement in a Bitcoin (BTC) money laundering conspiracy.
On October 31, 2018, police searched Wen’s residence and found a wallet containing 61,000 Bitcoins, which were seized. The value of confiscated BTC has since risen from £1.4 billion at the time to more than £3 billion ($4 billion).
Wen, 42, was allegedly enlisted by Yadi Zhang (also known as Zhimin Qian and nicknamed “Crypto Queen”) to act as a “lead person” for the operation.
Zhang is accused of defrauding 130,000 Chinese investors out of $5.6 billion between 2014 and 2017. would have arrested in the UK earlier this month.
Wen attempted to buy prestigious properties in London, such as a £23.5 million mansion in Hampstead and a £12.5 million property with luxurious amenities. These transactions gave rise to anti-money laundering checks, leading to the purchases being canceled due to Wen’s inability to explain the source of the BTC.
During her trial, Wen testified that she was unaware of the illicit origin of the funds and was simply seeking to improve her and her son’s lives. Prosecutors argued she was motivated by personal financial gain.
Wen was not charged with participation in the original fraud.
Last March, a jury sentenced Wen on one count of money laundering involving 150 BTC valued at almost £8 million ($10 million).
Judge Sally-Ann Hales revealed that more than 128,000 investors contributed 40 billion renminbi (about $5.6 billion) to the project.
“Part of the proceeds of this fraud were converted into Bitcoin, transferred to a cryptocurrency wallet and smuggled out of China using a laptop,” she explained.
Despite reporting income of just £12,800 (around $16,200) in 2015 and £5,979 (around $7,600) in 2016, Wen secured a six-bedroom property in London in 2017, paying more of £17,000 (about $21,600) per month.
Wen and his employer allegedly operated an international jewelry business, with Wen acting as a “leading person.” They also financed Wen’s son’s move from China to the UK to attend a private school and bought two properties in Dubai.
According to the CPS press release, Wen is guilty of converting “significant amounts” of Bitcoin into cash and other assets on behalf of his employer.
Crackdown on cryptocurrency money laundering
Crypto money whitening has had a significant impact on investors by undermining the integrity of the digital asset market.
Criminals exploit the relative anonymity of cryptocurrencies to launder the proceeds of various crimes, including cybercrime, fraud and theft.
As crypto.news recently reported, Daren Li and Yicheng Zhang were apprehended for laundering at least $73 million through shell companies linked to cryptocurrency investment schemes.
Their operation involved overseeing an international syndicate that laundered proceeds from cryptocurrency investment scams.
Victims were duped into transferring millions of dollars to US bank accounts under the guise of shell companies.
Subsequently, the funds were transferred to various domestic and international bank accounts and cryptocurrency platforms to disguise their origin, nature, ownership and control.
Li and Zhang are charged with conspiracy to commit money laundering and international money laundering, highlighting ongoing efforts to combat illicit activity in the cryptocurrency space.