The UK is considering plans to sell seized bitcoin worth over £5 billion amid growing budgetary pressures.
Government to Sell Seized Bitcoin as Budget Pressures Mount
Chancellor Rachel Reeves is overseeing the plan, with the Home Office developing a framework to manage and sell assets. The British Police Force has seized digital assets as part of criminal investigations, including a notable seizure in 2018 linked to a Chinese fraud case. Reeves is contemplating the sale of these assets as part of efforts to address rising debt and sluggish economic growth.
Majority of Seized Bitcoin Linked to Fraud Case
The bulk of the seized bitcoin was related to Jian Wen, a Chinese national convicted in connection with a large Ponzi scheme. During the 2018 investigation, UK police recovered 61,000 bitcoins which now form the core of the assets slated for sale. The government is closely monitoring developments, as some victims have already requested the return of funds.
Political Reactions to Cryptocurrency Sale
The proposal to sell bitcoin has received mixed reactions from political figures. Reform UK leader Nigel Farage has called for the establishment of a national bitcoin reserve, akin to a plan in the US. Meanwhile, the Labour Party dismissed this suggestion, citing the volatility of bitcoin prices as unsuitable for long-term government holdings. Professor Michael Levi noted that seized digital assets often must be securely stored for extended periods.
The decisions made in the coming months may set an important precedent for how governments manage large seized digital assets and shape future cryptocurrency policy.
