Jian Wen has been sentenced to six years and eight months in prison for her role in a Bitcoin (BTC) money laundering scheme.
On October 31, 2018, authorities raided Wen’s home and discovered a wallet containing 61,000 Bitcoins, which were confiscated. The value of the seized BTC has since increased from £1.4 billion to over £3 billion ($4 billion).
Wen, aged 42, was reportedly recruited by Yadi Zhang (also known as Zhimin Qian and referred to as “Crypto Queen”) to serve as a “front person” for the operation.
Zhang is accused of scamming 130,000 Chinese investors out of $5.6 billion between 2014 and 2017. She was recently arrested in the U.K.
Wen tried to buy high-end properties in London, including a £23.5 million mansion in Hampstead and a £12.5 million property with lavish amenities. These transactions triggered anti-money laundering checks, resulting in the cancellation of the purchases due to Wen’s inability to explain the source of the BTC.
During her trial, Wen claimed she was unaware of the illicit origin of the funds and was simply trying to provide a better life for herself and her son. Prosecutors argued that she was motivated by personal financial gain.
Wen was not charged with involvement in the original fraud. In March, she was found guilty of one count of money laundering involving 150 BTC valued at nearly £8 million ($10 million).
Judge Sally-Ann Hales disclosed 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 reporting low incomes in previous years, Wen upgraded to a six-bedroom property in London in 2017, paying over £17,000 per month.
Wen and her employer were said to operate an international jewelry business, with Wen acting as the “front person.” They also funded Wen’s son’s relocation from China to the UK for private schooling and purchased two properties in Dubai.
According to the CPS press release, Wen is guilty of converting significant amounts of Bitcoin into cash and other assets for her employer.
In related news, Binance executive denied bail in Nigerian money laundering case and crackdowns on cryptocurrency money laundering have had a significant impact on investors, undermining the integrity of the digital asset market.
Criminals exploit the anonymity of cryptocurrencies to launder proceeds from a variety of crimes, including cybercrime, fraud, and theft.
Recently, Daren Li and Yicheng Zhang were arrested for laundering at least $73 million through shell companies linked to cryptocurrency investment schemes. Their operation involved overseeing an international syndicate that laundered funds from cryptocurrency investment scams.
Victims were deceived into transferring millions of dollars to U.S. bank accounts under the guise of shell companies. The funds were then moved to various domestic and international bank accounts and cryptocurrency platforms to conceal their origin, nature, ownership, and control.
Li and Zhang face charges of conspiracy to commit money laundering and international money laundering, highlighting ongoing efforts to combat illicit activities in the cryptocurrency industry.
In another development, Canadian regulators have fined Binance $4.4 million for money laundering violations.