UK court rules Chinese law governs claims to seized Bitcoin

• The High Court ruled that Chinese law governs the underlying rights claimed by victims seeking recovered Bitcoin.
• The case involves more than 61,000 Bitcoin seized by UK police, worth billions of pounds.
• The ruling determines which country’s law applies, not who ultimately owns the cryptocurrency.

The ruling follows claims from investors who have lost money in fraudulent schemes operated in China between 2014 and 2017.

“The applicable law is Chinese law,” the High Court concluded in its ruling on claims to the seized Bitcoin.

The court found that the investment schemes, payments and Bitcoin (BTC) purchases were centred in China, making Chinese law the appropriate framework for assessing claimants’ underlying rights.

The ruling does not settle ownership of the seized Bitcoin, as each claimant must still establish whether Chinese law gives them a valid proprietary interest.

The case concerns Bitcoin acquired using funds from alleged Ponzi schemes that promised returns through investment products, digital assets and other ventures.

The UK High Court will apply the Proceeds of Crime Act 2002 to determine how claimants can assert their rights against the recovered assets.

The ruling establishes Chinese law as the governing framework for claims to the seized Bitcoin, while leaving claimants’ ownership rights to be determined.