The Blue Sky Greet crypto case is one of the largest international crypto-fraud matters to reach the English courts. Substantial amounts of suspected criminal proceeds were converted into Bitcoin and transferred to the UK by so-called “Cryptoqueen” Qian Zhimin, where they are now subject to civil recovery proceedings.
POCA s.281 – Claims by Victims
Under Section 281 of the Proceeds of Crime Act 2002 (POCA), victims may apply to the High Court for a declaration that the restrained assets belong to them.
To succeed, a claimant must show:
- a proprietary interest in the seized crypto assets;
- clear tracing evidence linking their funds to the Bitcoin held in the UK;
- no competing public-interest reason for confiscation.
While effective for a small number of victims with strong evidence, s.281 claims can be complex and costly.
The Proposed Compensation Scheme
Given the scale of the fraud and the number of victims, the Crown Prosecution Service has proposed a court-supervised compensation scheme. A trustee is expected to be appointed to:
- review victim claims,
- manage or liquidate the crypto assets,
- distribute compensation fairly.
This scheme is likely to become the main recovery route for most victims and is designed to simplify access to compensation without individual High Court litigation.
What Victims Should Do Now
Victims should begin gathering evidence, including transaction records, bank statements, wallet histories, and communications. Early preparation will be essential once the compensation process formally opens.
Our firm is closely following the case and advising victims on their recovery options, including s.281 applications and preparation for the upcoming compensation scheme.
If you or your clients have been affected by the Blue Sky crypto scheme, please contact us for tailored advice.
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