[Bitcoin] woman found with £2bn worth of bitcoin

[SmartGold01]

"Jian Wen, 42, was involved in converting Bitcoin into assets like luxury houses.

A former takeaway worker found with Bitcoin worth more than £2bn was jailed for six years and eight months for a crime linked to money laundering on Friday. Jian Wen, 42, from Hendon, in north London, was involved in converting the currency into assets including multi-million-pound houses and jewellery.

At Southwark Crown court in March, she was convicted of entering into or becoming concerned in a money laundering arrangement.The Metropolitan Police said at the time of the conviction the seizure was the largest of its kind in the UK."

When I came across this news on a bbc.com website I couldn't believed it but was moved to share over here to know her involvement as when she started making investment to have worth almost €2b worth in bitcoin, most times it's hard to believe story like this.

The floor is open for discussion (if this already discussed then remind me to Lock this topic).

[btc78]

What I am wondering about is why did she have to launder the money? Is it because she did not want to pay taxes? I would be interested to hear how she got that €2bn worth of bitcoin. How did she start? Did she just hold for a really long time? And a lot of other questions. Anyway it’s a shame to have finally all that amount of money just to go to jail.

[OcTradism]

"Jian Wen, 42, was involved in converting Bitcoin into assets like luxury houses.

This link has very little information and you can get more detail there.
Woman found with £2bn in Bitcoin convicted of money laundering arrangement offence

This gives some more information but still not clear enough. Information like she claims to get money from Bitcoin mining, then buy luxury things, jewellery from her illegal money.

I don't see the article has details about here criminal activities, maybe more details will come later when government completes their investigation on this case.

[yhiaali3]

The ready charge for anyone found working with cryptocurrencies for large amounts will be money laundering. I really don't know whether this woman laundered money or did she just buy luxury homes and jewelry worth millions of pounds sterling?

There is nothing in the news that indicates that she robbed an exchange or another service or committed fraud. There are no details about the source of her money. Perhaps her crime is only that she converted this large amount of Bitcoin into the equivalent of about 2 billion pounds sterling, which is a very large sum that would attract the attention of the police.

[mk4]

As bitcoin slowly but surely becomes used for transactions(and it will mostly happen first for more expensive things like in this case), the more stories like this would become far more common.

Idk, it just makes far more sense if you want to transact "in private" lol.

[Davidvictorson]

yhiaali3, OcTradism, btc78, and any other person who may have more questions to ask there is more to it:

According to the investigations, she is linked to a wider fraudulent scheme that originated from China. And it involves more than 61,000 Bitcoin. And spending proceeds of crime money makes her accomplice in it.

The subsequent investigation culminated in police seizing devices containing 61,000 bitcoins — currently worth more than $4 billion — in 2018, in what was the UK's largest-ever crypto seizure.

The funds are said to have come from an investment fraud operation in China led by her "employer," Yadi Zhang.

In her sentencing remarks, Judge Sally-Ann Hales, KC, said that more than 128,000 investors pumped 40 billion Renminbi (roughly $5.6 billion) into the scheme.

"Some of the proceeds of this fraud were exchanged for bitcoin, loaded onto a cryptocurrency wallet and smuggled out of China on a laptop," she added.

This news source added more details - https://africa.businessinsider.com/news/former-chinese-takeaway-worker-jailed-for-money-laundering-after-police-seized-61000/7zb0m8r

[Sebas.tian]

I think, she has some assets she sold some years ago that gave her some huge amount of capital to invest in Bitcoin, that made her to achieved the €2b  worth of Bitcoin. The mistakes she made is to released all her Bitcoin to acquired those assets in her country when she knew that Bitcoin is illegal in that particular country, because the amount of funds she use to purchased all those assets at once, it will make the government to suspect her for money laundry. I don't think, the six years in prison will make her to forget her mistakes she made to released all her Bitcoin to loss all her life savings to government, because it will be very hard for her lawyer to win such case for her favourite.

[pinggoki]

According to the investigations, she is linked to a wider fraudulent scheme that originated from China. And it involves more than 61,000 Bitcoin. And spending proceeds of crime money makes her accomplice in it.

So basically she's a front for the operation and they've chosen UK as the place to clean their money through this means, is that correct? 61k bitcoin is just a really huge number, I do feel like there's more to this than just a syndicate and I think that there's a Chinese government involvement here because there's no way that they're letting this 2 billions pounds worth of bitcoin get laundered unnoticed, I think that it's the Chinese government that's got this operation when you try and dig through it.

I think, she has some assets she sold some years ago that gave her some huge amount of capital to invest in Bitcoin, that made her to achieved the €2b  worth of Bitcoin. The mistakes she made is to released all her Bitcoin to acquired those assets in her country when she knew that Bitcoin is illegal in that particular country, because the amount of funds she use to purchased all those assets at once, it will make the government to suspect her for money laundry. I don't think, the six years in prison will make her to forget her mistakes she made to released all her Bitcoin to loss all her life savings to government, because it will be very hard for her lawyer to win such case for her favourite.

If you've read what @Davidvictorson posted, you'd know that she's already a part of a money laundering scheme that aims to clean those bitcoins and avoid as much tax as possible through various ways of cleaning those bitcoins, that's why she got those properties to make it look like the money came from real estate or something.

[odolvlobo]

There are plenty of articles that explain more, such as this CoinDesk article:

Wen was accused of laundering BTC on behalf of Yadi Zhang, whose real name is Zhimin Qian.

Zhimian is alleged to have defrauded around 130,000 investors in China in an investment scam that brought in $5 billion.

[Plaguedeath]

Sigh, the medias always use Bitcoin as a headline, reading the title it sounds like Bitcoin should be blamed since it was being used for money laundering. While she's just converting the money to Bitcoin and then use it to buy luxury houses, if Bitcoin is the best way to launder money, she wouldn't get caught.

However, six years and eight months for $5 Billion is a good deal, she might not able to earn $5 Billion even she work very hard for seven years.

[avikz]

Sigh, the medias always use Bitcoin as a headline, reading the title it sounds like Bitcoin should be blamed since it was being used for money laundering.

That's what! Media houses will always highlight Bitcoin here because they know it will generate more search value and make people intrigued to click on their link.

Money laundering is happening since a long time and fiat is the main instrument for such illegal acts. There are countries like Switzerland, Cyprus or Cayman Islands whose economy is built on laundered money. No one talks about them!

Unfortunately the media wants attention by creating attention regarding things like Bitcoin and cryptocurrency.

[LoyceV]

What I am wondering about is why did she have to launder the money? Is it because she did not want to pay taxes?

This is a common misconception. Money laundering is almost the opposite of tax evasion: criminals with illegal money want to pay taxes, so they can spend their money. Having 2 billion pounds in stolen money doesn't do you any good if you can't spend it, which means you need to make it look as if you're the legal owner of that criminal money. That's why they launder money, and that includes paying taxes. Even if half of it would go to taxes, having 1 billion that you can spend is still a lot better than having 2 billion which you can't spend.

[Reatim]

I think, she has some assets she sold some years ago that gave her some huge amount of capital to invest in Bitcoin, that made her to achieved the €2b  worth of Bitcoin. The mistakes she made is to released all her Bitcoin to acquired those assets in her country when she knew that Bitcoin is illegal in that particular country,

Is bitcoin illegal in the UK? I don’t think so.

because the amount of funds she use to purchased all those assets at once, it will make the government to suspect her for money laundry.

There is not much details in the article so we can’t make much assumptions however I think what she did wrong is that she did not have the appropriate documents revealing her assets. Even if it is in crypto form, in the eyes of the government you have to let them know about it. Which a lot of crypto enthusiasts are not very happy about since they greatly value their privacy.

[Catenaccio]

This is a common misconception.

I agree tax evasion does not equal to money laundering because a person with legal money from jobs can still do tax evasion.

Money laundering is almost the opposite of tax evasion: criminals with illegal money want to pay taxes, so they can spend their money.

I only don't understand it all.

Paying tax is to avoid legal troubles with government.
If you use illegal money to pay tax, you will have potential problems with governments and I believe no criminal will do it with their illegal money. They can try to do money laundering and get kind of legal money in their opinion, before they pay tax.

That's why they launder money, and that includes paying taxes.

It can be one of their choices but not their first choice because it is so risky.

[LoyceV]

Paying tax is to avoid legal troubles with government.
If you use illegal money to pay tax, you will have potential problems with governments and I believe no criminal will do it with their illegal money. They can try to do money laundering and get kind of legal money in their opinion, before they pay tax.

Say you have a billion dollars in a storage unit. You buy a car was in Albuquerque, and for every customer who washes their car, your wife Skyler enters an expensive car wash program into the cash registry. Then she adds the exact amount of criminal money into the drawer, and you can pay taxes on that amount. After that, you're just a very successful and tax paying car wash owner making loads of money from it!

[jrrsparkles]

Paying tax is to avoid legal troubles with government.
If you use illegal money to pay tax, you will have potential problems with governments and I believe no criminal will do it with their illegal money. They can try to do money laundering and get kind of legal money in their opinion, before they pay tax.

Say you have a billion dollars in a storage unit. You buy a car was in Albuquerque, and for every customer who washes their car, your wife Skyler enters an expensive car wash program into the cash registry. Then she adds the exact amount of criminal money into the drawer, and you can pay taxes on that amount. After that, you're just a very successful and tax paying car wash owner making loads of money from it!

Breaking Bad as a reference.

Indeed that's what money laundering is and launderers don't care how much money they lose in the name of tax because they want to spend the money they had or unless it is going to end up like what happened to Walter white's meth empire money that will be buried in the desert.

[Marvelockg]

yhiaali3, OcTradism, btc78, and any other person who may have more questions to ask there is more to it:

According to the investigations, she is linked to a wider fraudulent scheme that originated from China. And it involves more than 61,000 Bitcoin. And spending proceeds of crime money makes her accomplice in it.

The subsequent investigation culminated in police seizing devices containing 61,000 bitcoins — currently worth more than $4 billion — in 2018, in what was the UK's largest-ever crypto seizure.

The funds are said to have come from an investment fraud operation in China led by her "employer," Yadi Zhang.

In her sentencing remarks, Judge Sally-Ann Hales, KC, said that more than 128,000 investors pumped 40 billion Renminbi (roughly $5.6 billion) into the scheme.

"Some of the proceeds of this fraud were exchanged for bitcoin, loaded onto a cryptocurrency wallet and smuggled out of China on a laptop," she added.

This news source added more details - https://africa.businessinsider.com/news/former-chinese-takeaway-worker-jailed-for-money-laundering-after-police-seized-61000/7zb0m8r

I knew that something fishy must have been behind this and not just proceeds of Bitcoin mining. All these guys that steal people's funds through dubious means are the main anti bitcoinner that are tarnishing the image of genuine Bitcoin users making it seems as though anyone that's getting involved in Bitcoin holding got is Bitcoin from a wrong and illegitimate source.

If it's true that the Bitcoin in her possession are product of fraudulent endeavors then she deserve what she's getting cause she's truly an enemy to the effectiveness of the decentralized system.

[Hazink]

Paying tax is to avoid legal troubles with government.
If you use illegal money to pay tax, you will have potential problems with governments and I believe no criminal will do it with their illegal money. They can try to do money laundering and get kind of legal money in their opinion, before they pay tax.

Say you have a billion dollars in a storage unit. You buy a car was in Albuquerque, and for every customer who washes their car, your wife Skyler enters an expensive car wash program into the cash registry. Then she adds the exact amount of criminal money into the drawer, and you can pay taxes on that amount. After that, you're just a very successful and tax paying car wash owner making loads of money from it!

Basically, what these guys need is just an active business to use and clean up their dirty money, not Bitcoin, as most people usually tag Bitcoin as the perfect means for such illegal activities. In fact, from observation, most of these offshore accounts and business owners are the perfect way to clean up their dirty money. 
 
The car wash business is also a good example, as there is no price control of how much can be the maximum amount one can wash a single car, so you can increase the amount to any undoubtable number and make it official.
 
Big club houses are also perfect businesses that money launderers use; all that's needed is a registered business good accountant to cover up all the mess, and everything will be put in place unless there is a loophole that can also drag back attention to the place.

[taufik123]

-snip-
Unfortunately the media wants attention by creating attention regarding things like Bitcoin and cryptocurrency.

Don't forget that now Bitcoin has even reached a new ATH that could make bitcoin haters manipulate the media Or those who want to change the view of bitcoin are always negative and make the price drop drastically to get a more DIP price.

They give it a controversial title so that someone can click it, but if you just read the headline without looking at the content of the story,
it would be misleading, that's often the case nowadays.


About the money laundering case described by the OP, That's not even compared to the biggest money laundering case in the world, like the one that happened to Wachovia Bank. In 2010, the bank was found to have been involved in money laundering belonging to Mexican drug cartels amounting to US$390 billion during the period 2004-2007.

https://www.theguardian.com/world/2011/apr/03/us-bank-mexico-drug-gangs

But since the context involves bitcoin, money laundering news is always the subject of talk to discredit Bitcoin

[el kaka22]

Well, it is not really that unheard of, UK has a lot of criminals who leave their crimes in their own nation and go there, which doesn't mean that you can't do any crimes at UK, of course there are mobs and mafia there too, just means that foreign mobs go there to retire, whereas active ones work there.

A lot of foreign ones make billions, and they want to figure out a way to launder that money into UK systems, so that they can live happily ever after. Buying up houses is great, but you can't just buy a thousand houses that worths a million, you need to buy a few that worths a lot, to make it quicker. And this definitely is a great method, a lot of people do this in the USA as well, buy Manhattan skyscraper stuff, to launder it.