Jian Wen has been sentenced to six years and eight months in prison for her part in a Bitcoin (BTC) money laundering scheme.
In October 31, 2018, authorities conducted a raid on Wen’s residence where they discovered a wallet containing 61,000 Bitcoins, which were subsequently seized. The value of the confiscated BTC has since skyrocketed from £1.4 billion at the time to over £3 billion ($4 billion).
Wen, aged 42, was allegedly recruited by Yadi Zhang (also known as Zhimin Qian and nicknamed “Crypto Queen”) to serve as a “front person” for the illicit operation.
Recent reports suggest that she was arrested in the U.K. earlier this month.
Meanwhile, Wen tried to acquire prestigious properties in London, including a £23.5 million mansion in Hampstead and a £12.5 million property featuring luxurious amenities. These transactions triggered anti-money laundering checks, leading to the cancellation of the purchases due to Wen’s inability to explain the source of the BTC.
During her trial, Wen claimed she had no knowledge of the illicit origins of the funds and was solely aiming to enhance her and her son’s lives. However, prosecutors argued that her motives were driven by personal financial gain.
Wen was not implicated in the primary fraud scheme.
In March last year, a jury found Wen guilty on one count of money laundering, involving 150 BTC valued at nearly £8 million ($10 million).
Judge Sally-Ann Hales disclosed that over 128,000 investors contributed 40 billion Renminbi (around $5.6 billion) to the fraudulent scheme.
“Funds from the fraudulent activities were converted into Bitcoin, transferred to a cryptocurrency wallet, and secretly moved out of China using a laptop,” she explained.
Despite reporting incomes of only £12,800 (approximately $16,200) in 2015 and £5,979 (roughly $7,600) in 2016, Wen transitioned to a six-bedroom London property in 2017, paying more than £17,000 (about $21,600) monthly.
Wen and her employer supposedly operated an international jewelry enterprise, with Wen serving as the “front person.” They also financed Wen’s son’s relocation from China to the UK for private schooling and acquired two properties in Dubai.
As per the CPS press release, Wen has been found guilty of converting “significant amounts” of Bitcoin into cash and various assets on behalf of her employer.
Crackdowns on Money Laundering in Cryptocurrency
The scourge of money laundering in cryptocurrency has taken a toll on investors, eroding trust in the integrity of digital asset markets.
Criminals capitalize on the inherent anonymity of cryptocurrencies to launder proceeds from a spectrum of illegal activities, ranging from cybercrime to fraud and theft.
Recent reports from crypto.news detailed the arrest of Daren Li and Yicheng Zhang, accused of laundering a minimum of $73 million through shell companies tied to cryptocurrency investment schemes.
They were at the helm of an international syndicate responsible for laundering proceeds obtained from cryptocurrency investment scams.
Using deceptive tactics, victims were tricked into transferring millions of dollars to U.S. bank accounts disguised as shell companies.
Afterward, the laundered funds were dispersed across different domestic and international bank accounts, as well as cryptocurrency platforms, to obscure their source, character, ownership, and management.
Li and Zhang are facing charges of conspiring to commit money laundering and engaging in international money laundering, highlighting continuous endeavors to counter illicit activities in the cryptocurrency domain.
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