Our weekly roundup of news from East Asia curates the industry’s most important developments.
Chinese national accused of $5.94 billion scam in court
A Chinese national is alleged to have scammed over 130,000 mainland China investors out of 43 billion Chinese yuan ($5.94 billion) and used Bitcoin to launder the proceeds.
Yadi Zhang was apprehended by United Kingdom authorities and, during her appearance at Westminster Magistrates’ Court on April 20, indicated through a translator that she intended to plead not guilty to two charges of criminal possession of cryptocurrency. She was remanded in custody.
“There should be no rush to judgment in this case. Ms Zhang asserts that she is wholly innocent,” her lawyer, Roger Sahota of Berkeley Square Solicitors, told the Financial Times.
Previously, her assistant, Wen Jian, a 42-year-old fast food worker in East London, pleaded guilty to charges of money laundering. In 2018, London police seized over 61,000 Bitcoin, now worth $4.0 billion, after raiding the home where two women were living.
Operating through the company “Blue Sky Grid,” Zhang allegedly orchestrated one of the biggest Ponzi schemes in mainland China, with over 130,000 victims. Local news reported at the time:
“Blue Sky Grid was established in Tianjin in 2014. With slogans such as environmental protection development, smart elderly care and Bitcoin mining, the company uses zero-risk and high-interest rebates as bait, conducts product promotion meetings, develops brokers and courses and training, signs investment agreements with the public, and absorbs social funds.”
When investors had earned “sufficient interest” and wanted to withdraw, however, things didn’t go well.
In 2017, faced with an uptick in redemption requests, Zhang reportedly fled China, first purchasing a Myanmese passport in the name of “Nan Yin” and using the forged document to obtain a genuine St. Kitts and Nevis passport through the country’s…
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