The UK strikes hard! $7.7 million in illegal cryptocurrency frozen in a year, with Coinbase as the biggest target
UK law enforcement recently released a set of data showing that since April 2024, approximately $7.7 million worth of illegal crypto assets have been frozen. The largest single freeze was a wallet worth $1.94 million (£1.5 million) on Coinbase, believed to be linked to a tax evasion case.
This large-scale operation is attributed to new regulations passed in the UK last year, which granted the National Crime Agency (NCA) and police the power to directly freeze suspicious crypto wallets without needing to arrest suspects, with a maximum duration of up to three years. If digital assets are deemed to 'harm the public interest,' authorities have the right to directly destroy them, especially privacy coins that are commonly used for money laundering.
However, law enforcement faces many new challenges when dealing with cases involving digital currency. Most of the frozen wallets belong to foreigners, making cross-border investigations exceptionally difficult; currently, only assets on centralized exchanges can be frozen, while private wallets remain untouchable; additionally, police generally lack expertise in blockchain investigations, further complicating enforcement efforts.
Lawyers predict that as law enforcement agencies become more familiar with the new regulations, the number of freezing orders will only increase. However, professionals also point out that compared to traditional money laundering channels, cryptocurrencies actually constitute a very small fraction of illegal funds—most dirty money still follows the old routes.
In discussions about cryptocurrency regulation, opinions are sharply divided. Supporters advocate for the cryptocurrency sector to be brought under regulation as soon as possible, calling for it to be 'no longer a lawless territory,' and pushing for stronger legal oversight; skeptics question the regulatory means, worrying about privacy infringements, and asking, 'Why should freezing be the default?'; bystanders, observing from a distance, note that with billions of dollars in daily cryptocurrency transactions globally, the mere $7.7 million seized suggests that crime is not as severe as it seems.
In summary, these discussions not only showcase the community's diverse perspectives and complex attitudes toward cryptocurrency regulation but also highlight that the depth of consideration from various groups based on their own positions makes this topic increasingly worthy of attention and in-depth exploration.
Do you agree that the government has the right to directly freeze crypto wallets? Do you believe anti-money laundering efforts should sacrifice crypto anonymity?
