In efforts to mitigate its budget deficit, the UK is reportedly considering the sale of confiscated Bitcoin, valued at over 5 billion British pounds ($6.7 billion), according to a report by The Telegraph.
The Home Office, along with the country’s Treasury head, Rachel Reeves, is coordinating with law enforcement to liquidate their Bitcoin (BTC) reserves. The government also plans to develop a system to facilitate the storage and sale of the seized cryptocurrency.
Although law enforcement typically handles crypto sales in the UK, the Treasury has become involved due to the recent cryptocurrency market rally, which has significantly increased the value of the government’s holdings. The exact amount of Bitcoin in the UK’s possession remains undisclosed, but it includes at least 61,000 Bitcoin, currently valued at approximately $7.1 billion. These holdings were seized from a Chinese Ponzi scheme in 2018 and are stored in the UK.
However, the UK’s intention to sell the Bitcoin may face legal hurdles. Victims of the Chinese Ponzi scheme have been actively seeking the return of their Bitcoin since 2024. Susie Violet Ward, CEO of Bitcoin Policy UK, stated that the UK’s Bitcoin is still under legal dispute and no sale can proceed until the legal process is resolved.
The Crown Prosecution Service is lobbying the High Court to retain the Bitcoin seized from the scheme. If successful, the funds could be sold and divided amongst law enforcement agencies. Bitcoin Policy UK’s head of policy, Freddie New, suggests that any sale of the cryptocurrency would take place under proceeds of crime laws, which stipulate that assets will be sold and used to compensate victims if ordered by a court.
In conclusion, the UK’s plan to auction off its seized Bitcoin holdings is complex, with a myriad of legal, diplomatic, and policy considerations to be taken into account. The outcome of this situation will undoubtedly have significant implications for the UK economy and its approach to cryptocurrency regulation and enforcement.
