The UK Home Office is coordinating with the police to handle the seized cryptocurrency assets, which include at least 61,000 Bitcoin (worth over $7 billion), according to a report from The Telegraph on Saturday.
Although the total value of all seized cryptocurrency has not been disclosed, the majority of it is identified as having been obtained from a multi-level fraud scheme in China linked to the UK. A woman was sentenced to over 6 years in prison in 2024 for laundering 150 BTC for a Chinese woman involved in this fraud.
Although the victims have requested the return of the seized funds, the Royal Prosecutor's Office is still seeking permission from the Supreme Court to retain the seized Bitcoin. If approved, the proceeds from the sale of this Bitcoin will be transferred to the national budget.
Information about the ability to sell the above cryptocurrency assets has attracted the attention of Finance Minister Rachel Reeves, who is currently facing a serious budget deficit. In April, Ms. Reeves stated that the UK Treasury wishes to work closely with the United States to promote innovation in the crypto industry by establishing clearer regulations.
"A solid legal framework for the cryptocurrency sector will help restore investor confidence, promote the development of financial technology (Fintech), and protect consumers throughout the UK," Ms. Reeves stated.
The UK government is currently inviting tenders for a contract to operate services for the management and liquidation of seized cryptocurrency assets, according to an announcement made by the procurement company BlueLight Commercial (owned by the police) on behalf of the Home Office. This contract is worth up to $53.7 million and will last for a minimum of 4 years. However, according to The Telegraph, no qualifying bids have been submitted yet.
The legal processing time after the seizure of digital assets also causes significant delays. The tender notice acknowledges:
"The average time from the moment of asset seizure to the completion of the legal process (disbursement) is about 1 year; for more complex cases, it can take 3 to 4 years."