Will the UK sell 61,000 BTC or pay victims the profit?
The United Kingdom has 61,000 Bitcoin worth around $ 7.2 billion after he has been guilty of fraud, and will determine a High Court test in January who will conquer the benefit of assets seized in 2018.
Zhimin Qian, also known as Yadi Zhang, argued on September 29 guilty of Southwark Crown Court bound by violations bound by a multi -year investment fraud that struck more than 100,000 people in China, and the metropolitan police said earlier that researchers had found 61,000 BTC in Hampstead in 2018.
According to the Financial timesPublic prosecutors prepare a High Court Route that would solve or victims are compensated with original loss values, around £ 640 million, or in today’s appreciation, about £ 5 billion at recent market levels, in which treasury officials cannot count any returns in the November budget.
This framing defines the market and legal questions, since a compensation level based on the principal sum returns a smaller amount of victims and leaves a surplus for the state after confiscation, while a Mark-to-Market Award sends the current value to victims and reduces any fiscal.
The legal mechanics is important.
Under the Proceeds from Crime Act 2002Courts seized to remove criminal benefits and then forcing against available assets, including digital assets that have been kept capable of. Compensation -orders under the Conviction law 2020 Focus on loss for victims and take priority over fines and confiscation where the perpetrator cannot meet everything.
Occupations suspend the payments under the status that the timing influences, even when liquid assets are ready to distribute. In 2023 and 2024, the home office also updated the powers for crypto and realization and authorized police and recipients to keep, convert and sell under the supervision of the court. In 2025, the central government moved to a national guardianship and realization framework to standardize activities.
Publications of the home office say that recovered money is being treated through the assets restimation scheme, which splits net re -receptions between the central government and operational partners such as police and prosecutors.
The immediate forward problem is the valuation date and the distribution path. If the High Court takes on the original loss as a basis for compensation, victims will receive around £ 640 million and the rest will be seized.
Under Aris, the net surplus would be shared between the treasury and assets recovery agencies, after reimbursements and costs. If the court needs the payment against the current market value, the proceeds will flow to victims, either in cash after realization or in kind by distributing BTC or its KaseVivalent via an arrangement that would be more operational complex, given the cross -border claim verification.
According to the Financial Times, civil servants have discussed the implications of the windfall, but they cannot acknowledge the proceeds for the tax event of November, and each distribution would depend on orders, professions and the recipient’s timetable.
The market corner turns on Cadence, not at the size of seclusion.
In the past week, the American Bitcoin ETFs registered the net inflow of more than $ 1.6 billion, which shows that the market routinely absorbs a daily question or offers shocks within that band.
At a round prize near $ 119,000, 61,000 BTC amounts to around $ 7.2 billion, which maps up to around 18 to 29 heavy ETF outflow days as a clog, a framing that exaggerates the impact because realized programs rarely settle in one session.
Liquidity studies of Kaiko Describe a market where American locations offer the deepest 1 percent order book depth in BTC pairs, and where the implementation risk drops when the sales route are cut by freely available agencies or in time and locations.
That is why the realization method is a second policy decision. Government sellers have familiar with two playbooks that are compatible with British powers.
They use Blokhandel via Prime Brokers and OTC market makers, which limit the visible footprint on exchanges and the flattening of the price effects, a route that the US used to move the Bitcoin Prime for the Government Bitcoin for the widened.
Another used auctions or controlled exchange programs, a model that is previously used by British police services for smaller lots through commercial auctioneers.
The new national custody and realization framework indicates to industrialize the process for larger cases, with recipients, compliance controls and reports that are within POCA and supervision of the court.
The results of the victim and the taxpayer also deviate from the timing.
Compensation for original loss, followed by the seizure of the remaining, points to a faster path to cash for victims after professional periods, because a recipient can sell in a liquid market using an established framework.
Mark-to-Market Compensation increases a more complex series of distribution choices, because paying in BTC divides market risks over many recipients, while paying the implementation of the cash concentrates in the recipient.
Anyway, the timing of the January hearing and any professions rules when the benefits start, and the state cannot book the value in tax plans in the short term.
In order to ground the supply question in operational terms, a cut program that continues to look within the recent ETF -Flow -Keri tires would look like the following, using $ 120,000 per BTC for illustration and ignoring slipper and reimbursements:
| Sales Cadans | Daily BTC | Daily fictional | Days to erase 61,000 |
|---|---|---|---|
| Slow drop | 250 | $ 30,000,000 | 244 |
| Firm | 500 | $ 60,000,000 | 122 |
| Aggressive | 1,000 | $ 120,000,000 | 61 |
| Golf sale, weekly | 5,000 | $ 600,000,000 | 12 waves |
These Magnitudes fall into capacity that ETFs and large OTC opposes can absorb when they are spread over sessions. The comparison does not mean a price path, it clarifies the size compared to the perceptible current.
Comparative precedent shows that the market can process the removal of state when the method is disciplined. Germany sold large tranches of seized BTC in 2024 by transfers and exchange sales, and the United States have thrown away a large part of the interests of Silk Road by periodic OTC-like routes after moving coins to a regulated Prime broker. Although the remaining BTC has now been reserved for its ‘strategic Bitcoin reserve’.
According to public disclosures and business declarations, those processes were performed, with market focus on transfer data and the prices reclaimed after the initial volatility. The British case is greater than the British sale of the UK and is in another legal context, because the court must match the refund and confiscation tasks under POCA and the conviction law before a realization time schedule is completed.
The unsolved legal point is whether victims are made complete at access costs or are made complete at the current value. According to the summaries of CPS guidelines and the policy of the home office, the reimbursement is intended to restore the loss and has priority over punishing orders, a design that promotes the original loss as a basic line, while confiscation takes away criminal benefits and the residual value for the State for the State via Aris via Aris a compensation is met.
The Financial Times reports that civil servants prepare arguments that are tailored to that structure and that the hearing result will form the distribution schedule, the tax footprint and every sales plan that follows.
A decision that anchores a fee to the original loss would leave a surplus that the State can realize under judicial supervision, subject to bars, with receipts divided between the treasury and operational partners.
A decision that uses the current value would allocate the majority of the value of the BTC to victims, with realization assanics, depending on or paying in cash or in kind.
The plea is introduced, the coins are in custody and the court calendar is set for the valuation test in January.
