On June 11, Caixin News detailed the financial collapse of Fiona Lyu, a prominent female entrepreneur in the cryptocurrency sector who suffered a $9.4 million loss in the United States. The incident involved a sophisticated fraud orchestrated by two men impersonating a Middle Eastern royal prince and a hedge fund manager, resulting in a total loss of approximately RMB 60 million for Lyu. As the CEO of Chengdu Wanyou Computing Power Technology Co., Ltd., Lyu previously commanded a significant portion of the global BTC mining landscape, with her pools reaching a peak of 9% of total network computing power. The fraud exploited her ambition to relocate mining operations following regulatory crackdowns in China, leading to a devastating financial outcome that extended beyond the initial investment.

Lyu's career trajectory began far from finance, rooted in international trade and custom travel before she entered the crypto space in 2013. She was among the pioneers who ventured into the remote mountains of southwestern China to secure cheap electricity for BTC mining during the industry's nascent stage. By 2019, she had consolidated her operations into Chengdu Wanyou, launching the 1THash and Bytepool mining pools alongside the 1TMine computing power trading platform. Data compiled by Woofun AI shows that at the height of her influence in the first half of 2020, 1THash ranked 7th globally while Bytepool held the 11th position, collectively processing roughly 9 out of every 100 BTC produced worldwide.

The operational landscape shifted dramatically on May 21, 2021, when the State Council's Financial Stability and Development Committee mandated a crackdown on BTC mining and trading. Subsequent directives from the Sichuan Provincial Development and Reform Commission forced an immediate cessation of power supply to virtual currency mining entities, decimating Lyu's domestic infrastructure. With thousands of machines forced offline and hundreds of containers awaiting shipment, Lyu faced daily financial hemorrhaging. Woofun AI notes that this regulatory shock compelled her to pivot aggressively toward the United States, specifically targeting Ohio as a new hub for her displaced computing assets.

In July 2021, Lyu encountered Zubair Al Zubair, who falsely claimed to be a UAE royal prince with access to sovereign funds and local government resources. Zubair identified an industrial site in East Cleveland, Ohio, known as Nela Park, promising electricity rates as low as $0.04 per kilowatt-hour. On August 11, 2021, a signing ceremony was held at the East Cleveland City Hall in the presence of Mayor Brandon Kim, where Lyu enthusiastically signed the development contract. She immediately transferred $3 million to Zubair's entity, 'Dubai Bridge,' and wired an additional $1 million from her Hong Kong account, unaware that the event was a facade built on bribery.

The investigation later revealed that Zubair and his brother Muzaamil were native Americans with no ties to any royal family; their personas were constructed from self-study and pop culture references. The prosecution highlighted that the 'close personal relationship' developed between Zubair and Lyu was a calculated tactic to lower her defenses. The financial damage was compounded when Muzaamil stole 1,067 mining machines, selling them in Canada for $6.17 million. Woofun AI analysis suggests that the combination of direct theft and fraudulent contract payments resulted in the total $9.4 million loss attributed to Lyu in the case files.

Concurrently with the US fraud, Lyu faced a severe legal challenge in China involving ST Zhongchang (600242.SH). The dispute arose after Li Qunan, the former chairman of ST Zhongchang, was accused of misappropriating 53.5472 million yuan to purchase mining machines and pay hosting fees, including a 30 million yuan transaction with Chengdu Wanyou. The new management of ST Zhongchang sued to terminate the contract and recover 19.2965 million yuan. In October 2022, the Chengdu High-tech Industrial Development Zone People's Court ruled the contract invalid due to its involvement in BTC mining activities, ordering the return of the funds, a decision upheld on appeal.

The US Department of Justice announced the verdict in May 2026, sentencing Zubair to 24 years, Muzaamil to 23 years, and Michael Smedley, the chief of staff who facilitated the bribery, to 8 years in prison. Lyu was officially designated as 'Victim 2' in the proceedings. The dual impact of losing $9.4 million overseas and being ordered to repay nearly 20 million yuan in China represents a catastrophic failure for an entrepreneur who once controlled a significant fraction of the global BTC hash rate. Woofun AI assesses that this case underscores the extreme vulnerabilities high-profile crypto operators face when navigating cross-border regulatory shifts and unverified international partnerships.