U.K. Struggles With £5B Bitcoin Seizure: Compensate Victims or Plug Budget Deficit?
The U.K. government is grappling with how to handle £5 billion ($7 billion) in Bitcoin seized from Chinese national Zhimin Qian in 2018. Over 120,000 victims in China are seeking compensation for their losses due to Qian's fraudulent activities.
The U.K. government is considering a proportional distribution approach to compensate victims. Legal experts suggest victims are entitled to compensation, but it may only cover the value they lost at the time of the fraud. This means the U.K. state could potentially benefit from any increase in Bitcoin's price since then.
Selling the seized Bitcoin now is a contentious issue. In 1999, the U.K. sold gold at a bear market low, causing controversy. Similarly, selling Bitcoin at its current high price could lead to criticism if the market crashes.
Qian pleaded guilty to possessing and transferring criminal property. The first hearing for civil proceedings is due in January. However, there's no public information about his legal representation in relation to the seized Bitcoin.
The U.K. government is weighing the options of compensating victims proportionally or selling the seized Bitcoin to help plug a significant budget deficit. Qian's civil case is set to proceed in January, with the outcome potentially impacting the compensation process.
