Jian Wen has been sentenced to six years and eight months in prison for her involvement in a money laundering scheme involving Bitcoin. How was she implicated in this illegal scheme?
Tl;dr
- In 2018, 61,000 Bitcoins were seized from Wen’s residence.
- Wen tried to buy luxury properties in London.
- She was convicted of money laundering last March.
- Wen converted a significant amount of Bitcoins into cash for her employer.
A Striking Case of Money Laundering through Bitcoin
Wen’s case, at 42 years old, sheds light on a dark reality involving Bitcoin and money laundering. Indeed, during a search at her home on October 31, 2018, law enforcement discovered a wallet containing 61,000 Bitcoins. The amount confiscated, initially worth 1.4 billion pounds, now approaches 3 billion pounds (over 3.5 billion euros).
A Leading Figure in a Massive Fraud
According to information revealed during the trial, Wen was recruited by Yadi Zhang, known as the “Crypto Queen”, to act as a leading figure in an extensive operation. Zhang is accused of defrauding 130,000 Chinese investors, resulting in a loss of 5.6 billion dollars between 2014 and 2017.
Controversial Real Estate Purchase Attempts
Wen attempted to acquire prestigious properties in London, such as a lavish estate in Hampstead and another property with luxury amenities. These transactions, however, triggered anti-money laundering checks, leading to the cancellation of these purchases as Wen failed to justify the source of these Bitcoins.
The Thick Fog Surrounding the Origin of Funds
During her trial, Wen claimed she was unaware of the illegal source of the funds, stating she was simply seeking to improve her and her son’s lives. Prosecutors, however, argued that Wen was driven by personal financial gain.
Last March, a jury found her guilty of money laundering involving 150 BTC, nearly worth 8 million pounds (10 million dollars).
Despite declaring modest income, Wen managed to reside in a six-bedroom home in London in 2017, paying a monthly rent of over £17,000 (nearly €20,000).
According to the CPS press release, Wen was found guilty of converting “substantial sums” of Bitcoins into cash and other assets for her employer.