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.
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.
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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.
Image: 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.
Image: 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.
Image: 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.
Image: Wen on a trip to Germany. Pic: Met Police
Image: 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.
Two senior Labour MPs have suggested the prime minister may have to go within months if the government continues to perform poorly.
Sky News’ deputy political editor Sam Coates said his sources – a member of the government and a prominent politician – have “put Sir Keir Starmer on notice”.
Both warned that, if Labour performs badly in next May’s elections across Wales, Scotland and London, it could mark the end of his time in Downing Street.
Coates added: “The level of unhappiness and despair in parts of the Labour Party is so striking that right now, on the first anniversary, I am hearing from ministers in government that Starmer might have to go in months.”
Reform UK is surging in the polls in Wales, while Labour faces a threat from left-wing parties such as the Greens in London.
It comes as the prime minister made it clear that Rachel Reeves has his “complete support” as chancellor and remains integral to his project, Sky News’s political editor Beth Rigby understands.
She looked visibly upset during Prime Minister’s Questions, with a spokesperson claiming she had been affected by a “personal matter”.
A day earlier, Sir Keir’s controversial welfare bill was passed despite a sizeable rebellion from Labour MPs, with major U-turns meaning a new £5bn black hole has appeared in the country’s finances.
One senior figure told Rigby that the pair were as “as close politically” as any chancellor and prime minister have ever been.
“She is going absolutely nowhere,” they added.
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2:58
Welfare vote ‘a blow to the prime minister’
Ms Reeves’s tears sent markets spiralling, with the value of the pound and long-term government bonds falling sharply.
Later in the day Sir Keir, said Ms Reeves will be chancellor for a “very long time to come”.
The prime minister said it was “absolutely wrong” to suggest her tearful appearance in the Commons related to the welfare U-turn.
“It’s got nothing to do with politics, nothing to do with what’s happened this week. It was a personal matter for her,” he said while speaking to the BBC’s podcast Political Thinking with Nick Robinson.
“I’m not going to intrude on her privacy by talking to you about that. It is a personal matter.”
Asked if she will remain in post, he said: “She will be chancellor by the time this is broadcast, she will be chancellor for a very long time to come, because this project that we’ve been working on to change the Labour party, to win the election, change the country, that is a project which the chancellor and I’ve been working on together.”
He said Ms Reeves has done a “fantastic job” and added: “She and I work together, we think together. In the past, there have been examples – I won’t give any specific – of chancellors and prime ministers who weren’t in lockstep. We’re in lockstep.”
Wes Streeting, the health secretary, also offered a strong defence for the prime minister and chancellor.
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11:07
Health Secretary: Reeves is ‘resilient’
He told Sky News this morning that Sir Keir has been “consistently underestimated” and was “of course” safe as prime minister.
And he said Ms Reeves was a “tough character” who was ” resilient” and “here to stay”.
Despite making “significant improvements”, Greater Manchester Police (GMP) has lost the “trust and confidence” of some victims of grooming gangs, according to a report by the police watchdog.
Michelle Skeer, His Majesty’s Inspector of Constabulary, said that since 2019, when GMP started to review its non-recent child sexual exploitation investigations, “the force has improved its understanding and approach to investigating allegations of child criminal and sexual exploitation”.
The document, published today, said police have live investigations into “multi-victim, multi-offender” child sexual exploitation inquiries, involving 714 victims and survivors, and 1,099 suspects.
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2:00
‘Our chance for justice’
But despite recording improvements, a report by His Majesty’s Inspectorate of Constabulary and Fire & Rescue Services (HMICFRS) also identified:
• Various training gaps within the investigation team • Lack of consistency in evaluating case files between social care, health and police • Failures to initially support victims meant they had “lost trust and confidence” in police
The report was commissioned by the Mayor of Greater Manchester Andy Burnham in 2024 to evaluate whether police, councils and health services can protect children from sexual exploitation in the future.
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1:40
Starmer to launch new grooming gang inquiry
The findings were issued as the final part of the CSE (child sexual exploitation) Assurance Review process which started in 2017. The first three reports examined non-recent child sexual exploitation in Manchester, Oldham and Rochdale.
Mr Skeer said that the force has been trying to improve its service to those who have experienced sexual exploitation, but previous failings have badly affected trust in GMP.
He said: “For some, trust and confidence in the police had been lost, and the force would not be able to rectify their experiences.
“It is vital that improvements are led by victims’ experiences, and if they do come forward, they are supported, protected and taken seriously.”
A recent report by Baroness Casey found a significant over-representation of Asian men who are suspects in grooming gangs in Greater Manchester, adding though authorities are in “denial” more needs to be done to understand why this is the case.
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6:52
Teen caught in child sex exploitation
Inspectors also said there were “training gaps” in some investigation teams and issues with data sharing, with local councils sometimes not willing to provide detectives with information, leading to “significant delays in investigations” into grooming gangs.
It cites problems with intelligence provided by Manchester City Council, which took months to arrive and “was so heavily redacted that some pages contained only a few words”, the report said.
GMP is the only force in the country to set up a dedicated team to investigate grooming gangs. Called the Child Sexual Exploitation Major Investigation Team (CSE MIT) it has about 100 staff and a ringfenced budget.
In October 2024, the force told inspectors there were 59 live multi-victim, multi-offender child sexual exploitation investigations, of which 13 were being managed by the CSE MIT.
The report adds: “The force fully accepts that it made mistakes in the past.
“It has taken positive and effective steps to learn from these mistakes and improve how it investigates recent and non-recent child sexual exploitation.”
Separately, the Baird Inquiry published in July 2024 found officers at GMP were abusing their power – making unlawful arrests, unlawful and demeaning strip searches, sometimes treating victims as perpetrators, and traumatising those who have suffered sexual abuse or domestic violence.
The health secretary has offered a strong defence of the prime minister and chancellor – ahead of Sir Keir Starmer setting out his 10-year vision for the NHS.
Wes Streeting dismissed suggestions the prime minister could be forced out in months following the toughest week of his premiership yet, and described Rachel Reeves as “resilient” and would “bounce back” following her tearful appearance in the Commons on Wednesday.
Overnight, two senior sources – a member of the government and a prominent politician – told Sky News’ deputy political editor Sam Coates that they had “put Sir Keir Starmer on notice”.
The health secretary, who was speaking as Sir Keir prepares to set out his 10-year vision for the NHS, said the prime minister had been “consistently underestimated”.
Asked by Kamali Melbourneon Sky News Breakfast whether Sir Keir was “safe”, Mr Streeting said: “Of course.
“Keir Starmer has been consistently underestimated. I wonder when people will learn.
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2:36
Reeves has ‘complete support’
“They said he couldn’t win the Labour leadership, but he did. They said he couldn’t change the Labour Party, but he did.
“They said he couldn’t take the Labour Party from its worst defeat since the 1930s to election victory last year. And he did and now the cynics say he can’t change the country, but he will.”
As for Ms Reeves – whose tearful appearance in the Commons spooked markets after the prime minister initially failed to back her, Mr Streeting said the chancellor was a “tough character” who was “resilient and she will bounce back”.
The health secretary declined to expand on why Ms Reeves was in the chamber at all yesterday, repeating that it was a personal matter.
“Rachel Reeves as chancellor is here to stay,” he continued.
“We need her to get the economy from strength to strength, to make sure that family finances are in better health than we were when we came into office.”
Speculation about the futures of the two most senior members of the government threaten to overshadow the announcement today, which the government says is “one of the most seismic shifts” in the health service’s history.
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3:05
Why has Starmer axed NHS England?
Sir Keir will pledge three main facets of the plan: moving care into the community, digitising the NHS, and a focus on sickness prevention.
The prime minister will announce neighbourhood health services will be rolled out across England to improve access to the NHS and to shift care out of overstrained hospitals.
Sir Keir has already promised thousands more GPs will be trained, and to end the 8am “scramble” for an appointment.
He also previously said his government will bring the NHS into the digital age, with “groundbreaking” new tools to support GPs rolled out over the next two years – including AI to take notes, draft letters and enter data.
And he will promise new contracts that will encourage and allow GP practices to cover a wider geographical area, so small practices will get more support.
Unite, one of the UK’s largest healthcare unions, welcomed the plan cautiously but said staff need to be the focus to ensure people are better looked after.
Sir Keir said: “The NHS should be there for everyone, whenever they need it.
“But we inherited a health system in crisis, addicted to a sticking plaster approach, and unable to face up to the challenges we face now, let alone in the future.
“That ends now. Because it’s reform or die.”
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2:04
Do you want AI listening in on chats with your doctor?
Neighbourhood health services
The newly announced neighbourhood health services will provide “pioneering teams” in local communities, so patients can more conveniently access a full range of healthcare services close to home.
Local areas will be encouraged to trial innovative schemes like community outreach door-to-door to detect early signs of illness and reduce pressure on GPs and A&E.
The aim is to eventually have new health centres open 12 hours a day, six days a week to offer GP services as well as diagnostics, post-operative care and rehab.
They will also offer services like debt advice, employment support, stop smoking help or weight management.
More NHS dentists
Dentists will also be part of the plan, with dental care professionals part of the neighbourhood teams.
Dental “therapists” will carry out check-ups, treatments and referrals, while dental nurses could give education and advice to parents or work with schools and community groups.
Newly qualified dentists will be required to practice in the NHS for a minimum period, which they have said will be three years.