UK Home Office Plans Sale of $7B Seized Bitcoin

The UK Home Office is moving forward with plans to sell a significant stockpile of seized cryptocurrency, valued at around $7 billion in Bitcoin, according to The Telegraph. This cryptocurrency includes at least 61,000 BTC, taken from a Ponzi scheme linked to China. In a related case, a woman received a six-year prison sentence in 2024 for laundering 150 BTC on behalf of a Chinese fraudster. Despite victims demanding funds' return, the Crown Prosecution Service is seeking court permission to keep the seized assets, which will be allocated to the Treasury. Chancellor of the Exchequer Rachel Reeves is paying close attention to this potential sale due to a pronounced budget deficit. In April, Reeves expressed a desire for the UK Treasury to collaborate with the U.S. in enhancing clarity and support for the crypto industry through regulated frameworks, emphasizing that robust regulations will enhance investor confidence and contribute to Fintech growth. In addition, the UK government is seeking to contract a centralized service that would manage the custody and sale of seized cryptocurrencies, with a contract value of up to $53.7 million over a minimum four-year period. However, suitable proposals have yet to materialize, as reported by The Telegraph. One significant hurdle remains the lengthy process between asset seizure and legal clearance for sale. The tender notice indicates that while the average time for asset realization is about one year, more complex cases can take three to four years. Disclaimer: The Block operates independently to provide objective news and data on the crypto industry, with no intent for legal or financial advice.