UK Regulators Seize £3.8Bn Bitcoin, Korea Blocks Unregistered Exchanges
Key Summary
The UK High Court has ruled that Chinese victims of a 2017 crypto fraud will not be able to claim seized Bitcoin worth £3.8Bn, as the assets are governed by Chinese law. Meanwhile, South Korea has blocked access to 27 unregistered crypto exchanges, including KuCoin and MEXC, amid concerns over anti-money laundering regulations.
Background
The UK High Court has strengthened the UK authorities' position in a dispute over roughly 61,000 seized Bitcoins, a haul reportedly worth about £3.8Bn. The preliminary ruling narrows victims' path to a claim but does not decide who ultimately receives the assets; separate measures in South Korea show crypto regulation now extending to exchange access.
UK Ruling
The case centers on Bitcoin London's Metropolitan Police seizing the assets during an investigation into Zhimin Qian, a Chinese national who was jailed at Southwark Crown Court after pleading guilty to orchestrating fraud against thousands of victims in China between 2014 and 2017. This is one of the largest confirmed crypto seizures by law enforcement.
Chinese Law Applies
Judge Mark Turner ruled that Chinese law should apply, reasoning that the alleged fraud, payments, and immediate economic harm occurred in China. English law had been viewed as more favorable to claimants because it could have allowed them to argue that they owned the Bitcoin, rather than being treated only as creditors.
South Korea Blocks Unregistered Exchanges
Separately, South Korea approved measures to block domestic access to 27 websites operated by unregistered crypto exchanges and other virtual-asset service providers. The named platforms include KuCoin, MEXC, Phemex, Bitrue, CoinW, BTCC, BitMart, BingX, and DigiFinex.
CFTC Crypto Framework
The third issue is the prospective CFTC crypto framework for leveraged and margined trading. TD Cowen analyst Jaret Seiberg has forecast a lengthy process, with a proposal potentially arriving in late Q1 or early Q2 2027 and legal challenges possibly extending beyond 2028.