How Chinese takeaway worker led police to Bitcoin worth £3bn in Britain’s biggest ever cryptocurrency seizure
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 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
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 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
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
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.
An emergency measure has been triggered by the Ministry of Justice to deal with prison overcrowding in England.
Operation Early Dawn will see defendants in police custody remain there – and not be transferred to magistrates’ courts for bail hearings – in case there is no space in jail cells for that prisoner if they are remanded into custody.
Sky News understands the measure is just being used in London and the North East, at the moment.
The Law Society, which represents solicitors in England and Wales, says many magistrates’ court cases will be delayed as a result, with the most serious cases given priority.
Defendants who are not prioritised will be released on police bail, the Law Society added.
Read more: Early prison release scheme causing ‘high-risk’ offenders to be let out
At Prime Minister’s Questions, Sir Keir said the “prison system is in chaos” and asked the prime minister if his decision to “let prisoners out 70 days early makes our country more secure”.
A Ministry of Justice spokesman said: “This government is categorical that the most dangerous offenders should stay behind bars for longer, which is why new laws will keep rapists locked up for every day of their prison sentence and ensure life means life for the most horrific murderers.
“We continue to see pressure on our prisons following the impact of the pandemic and barristers’ strike which is why we have initiated a previously used measure to securely transfer prisoners between courts and custody and ensure there is always a custody cell available should they be remanded.”
The Law Society said it was “crystal clear” the prison space crisis “is a consequence of the government’s approach to justice including over a decade of underfunding of our criminal justice system”.
A spokesman added: “Victims, witnesses, defendants and lawyers will today turn up at magistrates’ courts across England only to find out that their cases have been delayed due to a crisis in prison and police cell capacity outside of their control.
“As of now, we understand that this pattern will be repeated every day that this emergency measure is in place.”
File pic: iStock
High-risk offenders being released early
In February, a separate scheme – the End of Custody Supervised Licence (ECSL) – to allow prisoners to be released early due to a lack of space was extended indefinitely. Those convicted of serious offences are not eligible for early release.
A row broke out over the scheme during Prime Minister’s Questions on Wednesday after Labour leader Sir Keir Starmer accused Rishi Sunak of allowing sex offenders to be released early.
Sir Keir quoted a report published on Tuesday by HM Chief Inspector of Prisons about Lewes prison in East Sussex, after he found a “high-risk prisoner had his release date brought forward under the ECSL scheme, despite having a history of stalking, domestic abuse and being subject to a restraining order”.
“He was a risk to children and subject to an exclusion zone that included the local authority responsible for trying to house him,” the report said.
But the prime minister said: “As I’ve said, no one should be put on this scheme if they are a threat to the country.
“And let me be crystal clear… it does not apply to anyone serving a life sentence.
“Anyone convicted of a serious violent offence, anyone convicted of terrorism, anyone convicted of a sex offence, and crucially, in contrast to the system that Labour had put in place, governors and the prison service have an absolute lock so that no one is put on this scheme who shouldn’t be.”
The owner of Royal Mail has said it is “minded” to accept a revised takeover bid by Czech billionaire Daniel Kretinsky.
The latest offer from Mr Kretinsky’s investment firm EP Group values the Royal Mail parent company International Distribution Services (IDS) at £3.5bn.
Money latest: UK economy in safe hands ‘whoever wins’ election, top bank chief says
Mr Kretinsky’s firm already owns most of IDS as a 27.6% shareholder but wishes to buy the remaining shares.
An earlier offer of £3.20 a share had been rejected last month for being too low.
But now he has offered to pay £3.60 for each share. The day before the original offer was made a share in IDS cost £2.14.
Keep up with all the latest news from the UK and around the world by following Sky News
An extra shareholder pay out of 8 pence a share has been offered by EP Group, if the deal closes, as has a 2 pence per share payment to every stakeholder, expected to be paid in September.
It would bring the total value of an IDS share to 73% more than it cost before the prospect of a buyout was raised.
‘Good value’
“Having considered the proposal, the board has indicated to EP Group that it would be minded to recommend an offer to IDS shareholders”, the IDS board said.
The price is “fair” and reflects the value of current growth plans, the IDS chairman said.
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Royal Mail could be allowed to deliver letters just three days per week, under a series of options outlined by the industry regulator.
Consideration was given by the board to the national significance of Royal Mail as the operator of the postal network.
“The board is particularly mindful of Royal Mail’s unique heritage and responsibilities as the designated universal service provider in the United Kingdom and a key part of national infrastructure”, it said.
In assessing the proposal, the board has also been very mindful of the impact on Royal Mail and GLS and their respective stakeholders and employees, as well as broader public interest factors”.
EP Group has until 29 May to advance or withdraw its takeover bid.
Who is Daniel Kretinsky?
There has already been scrutiny of Mr Kretinsky’s part ownership in the postal company but a government national security concerns review into his investment led to no intervention.
He also owns parts of West Ham Football Club and Sainsbury’s.
EP Group, which he controls, has financial interests in energy, logistics, and food retail.
The King and Queen have arrived at St Paul’s Cathedral in central London for a service of dedication for the Order of the British Empire.
Established by King George V in 1917 to reward outstanding contributions to the war effort – it now recognises the work of people from all walks of life.
Pic: PA
Around 2,000 people who are holders of the royal honours such as MBEs and OBEs – from the UK and Commonwealth – formed part of the congregation.
The King is the Sovereign of the Order of the British Empire, and the Queen is the Grand Master of the Order of the British Empire.
Pic: PA
It comes after the King carried out his first investiture in five months – and his first since his cancer diagnosis – at Windsor Castle yesterday.
Archbishop of Canterbury Justin Welby, who conducted the service for the coronation, was one of the 52 recipients of an investiture – and was given the Knight Grand Cross of the Royal Victorian Order.
Awards of the Royal Victorian Order are in the King’s gift and are bestowed independently of Downing Street to people who have served the monarch or the Royal Family in a personal way.
He said the King seemed in “very good spirits indeed” and was “looking very well” as they spoke during the ceremony.
The monarch, who is receiving treatment for an undisclosed form of cancer, was given permission by his doctors to return to public duties last month.
Keep up with all the latest news from the UK and around the world by following Sky News
Dean of Westminster Abbey Dr David Hoyle was among the other people honoured at the ceremony, as he was made a Knight Commander for his own role in the coronation.
He revealed there were plans for a building in the King’s honour to be built on the side of Westminster Abbey.
“We have already done the archaeology, so the site is prepared. We have plans which the King has seen. We hope we might have it built in the next two to three years,” he said.
Read more:
King’s first official painted portrait since coronation unveiled
King discusses cancer treatment and losing sense of taste
The King has invested a handful of people with honours over the past few months.
However, these ceremonies took place in private during individual audiences at royal residences.
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