A woman has been sentenced to prison by the Southwark Crown Court in London for her involvement in money laundering bitcoin linked to a multi-billion dollar investment fraud. Jian Wen, a former fast-food worker, received a sentence of almost seven years after being found guilty of laundering significant amounts of bitcoin associated with a $5.6 billion fraud scheme. The case involved approximately 150 bitcoin and saw Wen convicted of money laundering on behalf of a Chinese woman between 2017 and 2022. Law enforcement authorities seized over 61,000 bitcoin worth more than $4 billion. During the sentencing, Judge Sally-Ann Hales acknowledged the sophistication and extensive planning involved in the offense, stating that Wen was well aware of her actions. Despite holding dual British and Chinese citizenship, Wen denied all allegations and is currently appealing her conviction. She portrayed herself as a victim who was manipulated by a “criminal supervillain” and claimed she had no knowledge of the funds’ fraudulent origins. However, the prosecution argued that Wen was driven by greed and played a crucial role in managing the crypto wallet involved in the laundering scheme. Despite maintaining her innocence, Wen was found guilty of one count of money laundering in March. The trial lasted for nearly two months and presented substantial evidence, including WhatsApp messages between Wen and the alleged mastermind. In her sentencing, Judge Hales highlighted Wen’s dramatic lifestyle transformation, going from living in a basement to residing in a mansion and indulging in luxury shopping sprees. Wen’s lawyer denied the fraud allegations and insisted that her bitcoin holdings were acquired lawfully. While there was no evidence linking Wen to the underlying fraud, the judge emphasized that she was aware she was dealing with criminal proceeds. Wen was sentenced to six years and eight months in prison for a single count of money laundering. In other news, the EU has recently passed a new anti-money laundering regulation aimed at regulating crypto-asset service providers. The regulation grants power to Financial Intelligence Units to detect and combat money laundering and terrorist financing. It applies to crypto exchanges and brokers operating under the Markets in Crypto-Assets Regulation and introduces enhanced due diligence measures. Additionally, a new supervisory body called AMLA will oversee the implementation of the regulation. This comprehensive framework applies to all financial institutions, including crypto-asset service providers, and is not specific to crypto.
