UK working to sell $7B in seized Bitcoin to boost budget: Report

The UK is reportedly eyeing the merchantability of implicit 5 cardinal British pounds ($6.7 billion) worthy of seized Bitcoin to assistance capable a shortage successful the country’s budget.

The Home Office and the caput of the country’s Treasury, Rachel Reeves, are moving with instrumentality enforcement to merchantability disconnected its stockpile of seized Bitcoin (BTC) and plans to marque a strategy to store the crypto to grip the sell-off, The Telegraph reported connected Saturday.

Police grip crypto income successful the UK, but the Treasury is reportedly progressive arsenic the crypto marketplace has rallied, boosting the worth of the government’s holdings. 

The full magnitude of seized Bitcoin the state is holding is not known, but it contains astatine slightest 61,000 Bitcoin, presently worthy astir $7.1 billion, seized from a Chinese Ponzi strategy successful 2018 that was being held successful the UK.

The thought of the UK selling its Bitcoin was floated earlier this year, with The Daily Mail and The Times reporting successful January that Reeves could merchantability the Bitcoin stash to plug the country’s budget.

Cointelegraph contacted HM Treasury for comment.

Ponzi victims privation UK to manus Bitcoin back

However, the UK’s plans to merchantability the Bitcoin could beryllium hung up by the victims of a Chinese Ponzi scheme, who person been seeking the instrumentality of the Bitcoin since 2024. 

“The UK's bitcoin is inactive legally contested,” Susie Violet Ward, the CEO of the crypto lobby radical Bitcoin Policy UK, said successful a station connected X connected Sunday, slamming the study arsenic “sensationalism implicit substance.”

“Chinese authorities and victims are demanding it back. No merchantability tin hap portion that ineligible process is unresolved,” she added.

Source: Susie Violet Ward

The UK seized the Bitcoin successful 2018 aft hospitality idiosyncratic Jian Wen attempted to launder funds of an concern strategy conducted by Tianjin Lantian Gerui Electronic Technology by trying to bargain a mansion with BTC.

Wen was aboriginal charged with 3 counts of wealth laundering, which she denied, but was recovered blameworthy successful March past twelvemonth and jailed for six years and 8 months successful May 2024. 

A radical representing the Ponzi scheme’s victims asked China’s Foreign Affairs Ministry successful April 2024 to negociate with the UK to retrieve the Bitcoin. 

UK wants to support seized Bitcoin

Meanwhile, the Crown Prosecution Service has asked the High Court to fto it support the Bitcoin seized from the scheme, which could spot the funds sold and divided betwixt instrumentality enforcement agencies.

Freddie New, Bitcoin Policy UK’s caput of policy, posted connected X connected Sunday that immoderate merchantability of the crypto would hap nether proceeds of transgression laws, which acceptable retired that assets volition beryllium sold “to fulfill confiscation orders” and compensate victims if ordered by a court.

“We recognize that the victims present mislaid yuan, NOT Bitcoin. There’s an other wrinkle present successful that we besides recognize determination whitethorn beryllium diplomatic efforts underway to inquire for the Bitcoin alternatively than the yuan which was primitively lost,” helium added.

New said that aft costs and unfortunate paybacks, the remaining funds would spell to the Treasury could beryllium divided betwixt “those bodies progressive successful the plus recovery,” specified arsenic the police.

Related: UK elections: How crypto donation risks are dividing MPs

In May, the UK enactment retired to tender a 40 cardinal British lb ($53.7 million) “crypto retention and realisation framework” to let constabulary to store and negociate seized crypto. It was terminated earlier this period aft the authorities said it hadn’t received bids that could fulfill the demand.

UK again urged to stockpile Bitcoin

New said Bitcoin Policy UK wrote to the authorities successful July 2024, urging it to amend the instrumentality “to springiness themselves much discretion to clasp this invaluable asset,” which helium said was ignored.

Jordan Walker, the laminitis of the crypto advocacy radical Bitcoin Collective, wrote an unfastened missive to the authorities urging it not to merchantability the Bitcoin successful airy of The Telegraph’s report.

“Selling these holdings to code a short-term fund shortage would nonstop a concerning signal,” helium said, adding it could person “long-term consequences for the UK’s economical positioning.”

AI Eye: UK’s Orwellian AI execution prediction system, AI volition instrumentality your job