The UK government through Chancellor Rachel Reeves is reportedly preparing to sell over £5 billion(≈ 61,000 BTC) in seized cryptocurrency, largely from a 2018 Chinese Ponzi scheme. This Bitcoin haul, now valued at roughly $7 billion (≈ £5.4 billion), has prompted discussions on how best to liquidate it to help bridge the nation’s budget shortfall.

From The Daily Telegraph via Wu Blockchain on X:

“According to the Daily Telegraph, UK Chancellor Rachel Reeves is considering selling police‑seized Bitcoin assets to fill the public finance gap. This batch… valued at over £5 billion.”

And according to Phemex:

“UK Treasury plans to sell over £5 billion worth of Bitcoin assets… including 61,000 bitcoins from a 2018 Chinese Ponzi scheme… The Home Office is developing a Crypto Asset Custody and Disposal Framework.”

HODL or PANIC? UK Might Dump 61,000 BTC Worth £5 Billion — Here's What You Need to Know"

🧠 BEING A CRYPTO ANALYST LET ME TELL YOU WHY THIS MATTERS!!

💰 Massive Sell-Off Risk

  • Liquidating ~61,000 BTC would rank among the largest government-driven sell-offs, potentially flooding exchanges and causing short-term liquidity pressure.

⚖️ Legal & Logistical Complexity

  • Funds are tied to legal processes: victims may claim restitution, transfers may be frozen, and courts may order holdbacks. Sales could be delayed months or years.

🏛️ Structured Approach

  • The Home Office is designing a centralized Crypto Asset Custody & Disposal Framework, soliciting bids (up to £40 million contract) for secure handling and sale of assets.

🧩 Market & Policy Implications

📉 Price Volatility

  • Sudden BTC supply uptick could trigger short-term dip,as to Germany’s ~50k BTC sale that pressured prices.

⚙️ Market Resilience

  • Markets are deeper now with institutional adoption, ETFs, and strong retail demand, absorption capacity is higher, potentially lessening impact.

🏛️ Precedent-Setting

  • A transparent, well-timed sale could validate crypto seizure frameworks and influence other jurisdictions’ approaches but missteps could dampen sentiment or invite political/red-tape scrutiny

I believe Selling risks short-term market volatility, but if executed with judicious timing, transparency, and legal clarity, it could enhance adoption frameworks and bolster investor confidence in official crypto custody.

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