Bitcoin
Crypto Queen accomplice convicted of Bitcoin laundering
Jian Wen was sentenced to six years and eight months in prison for her involvement in a Bitcoin (Bitcoin) money laundering plot.
On October 31, 2018, police raided Wen’s residence and found a wallet containing 61,000 Bitcoins, which was seized. Since then, the value of confiscated BTC has increased from £1.4 billion at the time to more than £3 billion ($4 billion).
Wen, 42, was allegedly recruited by Yadi Zhang (also known as Zhimin Qian and nicknamed the “Queen of Cryptography”) to act as the “front person” for the operation.
Zhang is accused of defrauding 130,000 Chinese investors out of US$5.6 billion between 2014 and 2017. She was supposedly arrested in the UK earlier this month.
Wen has tried to buy prestigious properties in London, such as a £23.5 million mansion in Hampstead and a £12.5 million estate with luxury amenities. These transactions triggered anti-money laundering checks, leading to the cancellation of purchases due to Wen’s inability to explain the origin of the BTC.
During the trial, Wen stated that she had no knowledge of the illicit origin of the funds and that she was simply looking to improve her and her son’s lives. Prosecutors argued she was motivated by personal financial gain.
Wen was not accused of participating in the initial fraud.
Last March, a jury condemned Wen on a money laundering charge involving 150 BTC valued at nearly £8 million ($10 million).
Judge Sally-Ann Hales revealed that more than 128,000 investors contributed 40 billion renminbi (approximately $5.6 billion) to the scheme.
“Some of the proceeds from this fraud were converted into Bitcoin, transferred to a cryptocurrency wallet and smuggled out of China using a laptop,” she explained.
Despite claiming income of just £12,800 (about US$16,200) in 2015 and £5,979 (about US$7,600) in 2016, Wen upgraded to a six-bedroom property in London in 2017, paying more than £17,000 (about of US$21,600) per month.
Wen and his employer allegedly operated an international jewelry business, with Wen acting as the “front 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 “substantial sums” of Bitcoin into cash and other assets on behalf of her employer.
Crackdown on cryptocurrency money laundering
Crypto money washing significantly impacted 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 recently reported by crypto.news, Daren Li and Yicheng Zhang were seized for laundering at least $73 million through shell companies linked to cryptocurrency investment schemes.
Their operation involved oversight of an international syndicate that laundered proceeds from cryptocurrency investment scams.
Victims were tricked into transferring millions of dollars to US bank accounts under the guise of shell companies.
Subsequently, the funds were transferred to various national and international bank accounts and cryptocurrency platforms to obfuscate their origin, nature, ownership and control.
Li and Zhang are charged with conspiracy to commit money laundering and international money laundering, underscoring ongoing efforts to combat illicit activities in the cryptocurrency domain.