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Within weeks of Yadi Zhang’s arrival in London in September 2017, Jian Wen had left her job and room in a Chinese takeaway and moved into a £5m six-bedroom house near Hampstead Heath.

The women, who claimed to run an international jewellery business trading in diamonds and antiques in countries including Japan, Thailand and China, travelled the world and spent tens of thousands of pounds on designer clothes and shoes in Harrods.

In her newly affluent lifestyle, Wen bought a £25,000 E-Class Mercedes and sent her son to the £6,000-a-term Heathside preparatory school.

But alarm bells rang when she tried to buy some of London’s most expensive properties, including a £23.5m seven-bedroom Hampstead mansion with a swimming pool and a nearby £12.5m home with a cinema and gym.

Wen, who had declared income of just £5,979 in the 2016/17 financial year, could not explain the source of the Bitcoin she would use to pay for the properties and police first raided the women’s home on 31 October 2018.

Jian Wen. Pic: CPS
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Jian Wen stood trial at Southwark Crown Court. Pic: CPS

But it would be another two-and-a-half years before investigators realised they had made the UK’s biggest-ever cryptocurrency seizure when more than 61,000 Bitcoin were discovered in digital wallets.

The cryptocurrency was worth £1.4bn at the time but its value has now risen to more than £3bn, while 23,308 Bitcoin, now worth more than £1bn, linked to the investigation remains in circulation.

The £5bn investment fraud

The Bitcoin came from a £5bn investment scam carried out in China by Zhang, 45, who arrived in the UK on a false St Kitts and Nevis passport after conning nearly 130,000 Chinese investors in fraudulent wealth schemes between 2014 and 2017, a court heard.

Wen was not alleged to have been involved in the underlying fraud.

Zhang, who is also known as Zhimin Qian (which means money in Chinese) has fled the UK and her whereabouts are unknown.

Wen, 42, has been found guilty of one count of money laundering between October 2017 and January 2022 and the jury failed to reach verdicts on two similar counts following a trial at Southwark Crown Court.

Prosecutors are not seeking a retrial and Wen will be sentenced on 10 May.

The women rented a £17,000-a-month house in Hampstead. Pic: CPS
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The women rented a £17,000-a-month house in Hampstead. Pic: CPS

She was acquitted of 10 other money laundering charges at a trial last year, which could not be reported over fears hackers could target the firm holding the seized cryptocurrency if the figures involved were made public.

As a Category A prisoner, Wen, a small woman wearing large round glasses, was led to the witness box in handcuffs, while two dock officers guarded the door as she gave evidence.

She told jurors she grew up in a working-class family in China, where she met her husband Marcus Barraclough before coming to the UK while heavily pregnant on a spousal visa in 2007.

Wen visits the Lindt chocolate factory in Switzerland. Pic: Met Police
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Wen visits the Lindt chocolate shop in Switzerland. Pic: Met Police

Wen’s lifestyle change

The relationship broke down following the birth of their son and she lived a modest lifestyle in Leeds, where she took a law diploma and completed a BA in economics before moving to London in the summer of 2017.

She had already opened cryptocurrency accounts, making meticulous notes in her Wallace and Gromit notebook, but said she had “no idea” she would soon be dealing with Bitcoin on such a “massive scale”.

She applied for dozens of jobs while working in a Chinese takeaway in Abbey Wood, southeast London, where she lived in a room below the restaurant.

Wen said she saw an advert on Chinese social media app WeChat for a “butler” and first met Zhang at the five-star Royal Garden Hotel in Kensington. She later described her role as “live-in PA for a high net worth individual” on her CV.

The women soon moved into a £17,000-a-month Hampstead home after paying a £40,000 deposit and six months’ rent in advance.

Wen took trips to Thailand and Dubai and the women travelled extensively throughout Europe, with Zhang – who used aliases including Rose, Emma, and Hua Hua – avoiding countries with Chinese extradition agreements.

Wen tried to buy Hampstead property. Pic: Met Police
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Wen tried to buy Hampstead property. Pic: Met Police

Hampstead mansions and a Tuscan villa

They sold Bitcoin and bought fine jewellery, with receipts found for £25,600 and £18,750 from Christopher Walser Vintage Diamonds, in Zurich, and two watches worth around £49,300 and £69,900 from Van Cleef & Arpels in Switzerland.

Over a three-month period at the end of 2017, more than £90,000 was spent in Harrods on designer women’s clothes, jewellery and shoes using a rewards card in Wen’s name, although she told jurors: “I was the one carrying the bags.”

Wen bought two apartments in Dubai for more than £500,000 and looked into buying a £10m 18th century Tuscan villa with a sea view.

Wen on a trip to Germany. Pic: Met Police
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Wen on a trip to Germany. Pic: Met Police

Bundles of cash found in police raids. Pic: CPS
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Bundles of cash found in police raids. Pic: CPS

But efforts to buy multimillion-pound properties in London triggered anti-money laundering checks and none of the purchases went ahead because the source of the Bitcoin could not be explained.

Wen initially claimed the cryptocurrency had been mined, then said it was given to her as a “love present”, drawing up a deed of gift stating she had been given 3,000 bitcoin, then worth £15m, by Zhang.

Prosecutors said Wen acted as a “front person” to help disguise the source of the stolen money, which had been used to buy cryptocurrency to remove the proceeds from China.

‘I was duped’

Gillian Jones KC said when Zhang landed in London she needed to convert the Bitcoin back into cash or “property, jewellery or other high-value items”.

Wen accepted she was involved in an arrangement dealing with some of the cryptocurrency but said she did not know or suspect it was from the proceeds of crime, claiming she was “duped” by the woman she called her boss.

“We were close… but looking back now, I was badly used,” she said. “I have no idea where she is.”

Police say they are still actively looking for Zhang.

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Lucy Powell named Labour’s new deputy leader

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Lucy Powell named Labour's new deputy leader

Former Commons leader Lucy Powell has been crowned Labour’s new deputy leader in a closely fought race against Education Secretary Bridget Phillipson.

Ms Powell received 87,407 votes to Ms Phillipson’s 73,536 – a majority of 13,871 – in a contest that was widely perceived as a referendum on Sir Keir Starmer’s popularity with the membership.

Ms Powell was seen as the “anti-Starmer” candidate given she was sacked from cabinet just last month, and centred her campaign on being an independent voice for the backbenches.

Politics live: Follow for updates as Labour names new deputy leader

Ms Phillipson was seen as Number 10’s preferred option, and she had pitched herself as the “unity candidate”, warning that voting for her opponent would result in “internal debate and divisions that leads us back to opposition”.

However speaking to Sky News’s political editor Beth Rigby following the result, Ms Powell insisted she would be a “friend” to the prime minister, adding: “I am confident we can work well together.”

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She said she was not here to “write an alternative policy platform” but rather “to make sure Labour values and beliefs are right at the heart of the conversation, and that we’re giving a really clear sense of who we’re for”.

Ms Powell’s earlier victory speech made clear where she thought Labour was going wrong, and what she would challenge the government on.

The Manchester Central MP said Labour “won’t win by trying to out-Reform Reform, but by building a broad progressive consensus”.

She said that started with “wrestling back the political megaphone” from Reform leader Nigel Farage, and “setting the agenda more strongly”.

“Let’s be honest, we’ve let Farage and his ilk run away with it. He wants to blame immigration for all the country’s problems. We reject that,” she said.

“Our diagnosis is different, that for too long the country and the economy has worked in the interests of the few, not the many.”

The reference to “for the many not the few” – the slogan during Jeremy Corbyn’s time at the helm, was not lost on his then shadow chancellor John McDonnell.

The veteran left-winger said on X: “The Labour Party members have spoken & the message is clear, they want change. It’s good to see a return to references to the Labour Party serving once more the many not the few & that Labour must not try out Reform, Reform. Our members realise a new start is desperately needed.”

‘Unwanted deputy imposed on PM’

The deputy leadership role is important as it’s the key connection between the Labour members and the upper echelons of the Labour Party.

The race was triggered by the sudden departure of Angela Rayner, after she admitted to underpaying stamp duty.

The scandal sparked a reshuffle in which Ms Powell was one of the only casualties. It makes the new partnership potentially very awkward for Sir Keir, especially as his new deputy will be free to speak out against his policies from the back benches rather than being bound by collective responsibility like Ms Phillipson.

However in a possible olive branch, Sky News understands Ms Powell will be asked to attend political cabinet meetings, even though she will not officially be a member of cabinet.

Tory chairman Kevin Hollinrake said “weak Keir Starmer” has had an unwanted deputy leader “imposed on him by the Labour Party”, adding: “The failure of the Keir Starmer candidate, Bridget Philipson, is another defeat of the prime minister’s authority.”

Turnout for the vote was low – just 16.6%, suggesting a lack of enthusiasm among party members and its affiliates.

Sir Keir congratulated Ms Powell after the results were announced, saying she “has always been a proud defender of Labour values, and that is exactly what we need at this moment”.

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PM: Powell is ‘a proud defender of Labour values’

He echoed some of her language around immigration, as he attacked the Tories for this week suggesting they supported a policy to deport people who have settled in the UK legally, something Reform UK has advocated.

“That is what we’re up against on the right of politics, a politics of division and grievance that wants to take this great country to a very dark place”, Sir Keir said.

PM warns of ‘battle for the soul of our nation’

The prime minister is under pressure as the party plummets in the polls, with many MPs on the left predicting he could be gone by May if the local elections go badly.

Sir Keir acknowledged Labour is having a difficult time after it lost the Caerphilly by-election to Plaid Cymru on Thursday.

He said it was a “bad result” and “a reminder that people need to look out their window and see change and renewal in their community, opportunities for their children, public services rebuilt, the cost of living crisis tackled”.

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Phillipson ‘disappointed to lose’

“We must unite. We must keep our focus on what is, in my view, the defining battle for the soul of our nation. I know that Lucy will do just that,” he said.

Saturday’s result is the culmination of a six week contest, with the pair having had to secure nominations from 80 MPs in the first round and then win the backing of 5% of local parties or Labour affiliated groups before making it to the final vote.

Initially six candidates entered, but it quickly became a two-horse race as only Ms Powell and Ms Phillipson reached the 80 threshold, following claims from the left of a “stitch up”.

Ms Phillipson said she was “disappointed to lose” but Ms Powell “has my full support”.

She added: “What we all need to do now is unite this party, beat Reform and secure that second term Labour government.”

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How many prisoners are released by mistake? Here are the stats as search for migrant sex offender continues

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How many prisoners are released by mistake?  Here are the stats as search for migrant sex offender continues

The manhunt for a migrant who sexually assaulted a schoolgirl, and was released from prison in error, is ongoing.

Hadush Gerberslasie Kebatu was jailed for 12 months earlier this year after he sexually assaulted a 14-year-old girl and a woman in Epping.

He had been staying in the Bell Hotel in Epping and his arrest triggered large-scale protests and disorder.

The Ethiopian national, who came to the UK on a small boat in the summer, is now being searched for by the police after he was accidentally freed on Friday.

Follow the latest updates on the manhunt

Hadush Kebatu, jailed for two sexual assaults in Epping. Pic: Essex Police / PA
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Hadush Kebatu, jailed for two sexual assaults in Epping. Pic: Essex Police / PA

How many prisoners are released in error?

According to government statistics published in July, 262 prisoners were released in error in the 12 months to March 2025 – a 128% increase from 115 the previous year.

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The report states: “Of the 262 releases in error, 233 of these releases in error occurred from prison establishments, while 29 were released in error at the courts.

“Releases in error from establishments could also be a result of errors by the court.”

This is out of a total prison population across England and Wales of roughly 86,000.

Sky News has contacted the HM Prison & Probation Service to know how many of the 262 prisoners have since been found and returned to custody.

In September 2024, Sky News reported how dozens of people released from jail under the government’s emergency prison scheme were freed by mistake.

The Labour government said it was forced to release hundreds of inmates early because prisons were at capacity.

William Fernandez. Pic: PA
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William Fernandez. Pic: PA

Kebatu, who is thought to be in the London area, was due to be deported when he was mistakenly released from HMP Chelmsford on Friday.

Previous high-profile manhunts

William Fernandez, who was awaiting trial for sexual assault, was released from HMP Wormwood by error in March 2021. He then went on to rape a 16-year-old girl and sexually assault a young woman.

Joseph McCann. Pic: Police handout
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Joseph McCann. Pic: Police handout

In December 2019, the prisons and probation service “apologised unreservedly” after serial rapist Joseph McCann was freed to commit a series of sex attacks on women and children.

In July 2017, an inmate who was released from prison just months into a nine-year sentence due to a “clerical error” was arrested after weeks on the run.

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Murder investigation launched after teenager stabbed in south west London

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Murder investigation launched after teenager stabbed in south west London

A murder investigation has been launched after a 19-year-old was stabbed in south west London, earlier this week.

Police and the London Ambulance Service were called to the scene on Lavender Hill, close to Clapham Junction, on Tuesday afternoon following reports of a stabbing.

Rinneau Perrineau, 19 and who was known as Ren by his family and friends, was treated at the scene for stab wounds.

He was taken to hospital in a critical condition but died on Friday. One arrest has been made, the Metropolitan Police said.

In a statement, Rinneau’s family said: “Ren was loved by many, he was always around his family. He will be dearly missed.”

Read more from Sky News:
How many prisoners are released by mistake?
UK makes world’s biggest-ever seizure of fake weight loss jabs

‘An irrevocable loss’

Acting Borough Commander Amanda Mawhinney, who leads policing in the area, said: “Our thoughts are with the victim’s loved ones at this terrible time.

“This was a shocking crime committed in broad daylight. A teenager’s life was taken, and his family and friends have suffered an irrevocable loss.

“Our officers are making every effort to bring those responsible to justice. Residents may notice a police presence around the scene of the crime, as patrols have been stepped up in the local area.”

Officers are urging anyone who was in Beauchamp Road on Tuesday afternoon between 3:20 and 3:30 to call 101.

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