U.K. Cracks Down on Illicit Crypto, More Freezes Incoming

Since April 2024, U.K. authorities have frozen $7.7M in illicit crypto under new enforcement powers. The National Crime Agency (NCA) and police now have the authority to freeze, seize, and even destroy crypto tied to crime without requiring an arrest. Wallets can be frozen for up to three years, and funds can be seized if linked to illegal activity.

Biggest freeze: $1.94M wallet on Coinbase

The largest frozen wallet, worth $1.94M, was locked by Newcastle Upon Tyne Magistrates’ Court on March 18. The case, initiated by HMRC, suggests possible tax evasion. The wallet owner? Still unknown.

Crypto freezing wave expected

While $7.7M is small compared to daily crypto flows, lawyers warn that a “tsunami” of freezing orders is coming. HMRC and NCA are ramping up efforts, aggressively targeting illicit crypto use.

Challenges ahead

Most frozen wallets belong to foreign nationals, complicating enforcement. Private wallets remain out of reach, as U.K. authorities can only freeze funds on centralized exchanges. Additionally, lack of crypto knowledge among regulators is slowing down investigations.

Despite this, the U.K. is stepping up its game. With more resources allocated, expect more frozen wallets and stricter crackdowns ahead.