Key Takeaways
- The U.K. government reportedly plans to sell seized cryptocurrency.
- This could include over £5 billion worth of Bitcoin, the Telegraph reported.
- However, the Bitcoin in question remains subject to claims from Chinese fraud victims.
The U.K. Home Office is working with police forces to sell off seized cryptocurrency as Chancellor Rachel Reeves looks to plug a £20 billion hole in the nation’s budget, the Telegraph reported on Saturday..
However, critics are skeptical of connecting the U.K.’s Bitcoin seizures to public finances.
Balancing the U.K. Budget
The current government of the U.K. entered power on a promise of fiscal responsibility and reducing national debt as a share of the economy within five years.
However, when it comes to making the difficult choices needed to cut spending, the government was forced to backtrack due to opposition from voters and backbenchers.
After scrapping planned cuts to benefit payments in June, economists estimate the Chancellor needs to find an additional £20 billion worth of savings or revenue before the autumn budget. Without these, the government will fail to meet its fiscal goals.
According to the Telegraph, the government, “plans to develop an official crypto storage system that would handle sales of Bitcoin and other digital currencies.”
The newspaper suggested that this may provide so e relief for the Chancellor as she look to balance the budget. But this notion has come under scrutiny.
How Much Crypto Does the U.K. Have?
While British law enforcement agencies haven’t disclosed how much seized crypto they hold, authorities acknowledged pulling of the U.K.’s largest ever Bitcoin seizure in 2024.
In that case, Jian Wen was charged with laundering money from a Chinese Ponzi scheme run by Lantian Gerui. As part of their investigation, British police seized wallets holding more than 61,000 BTC, Reuters reported at the time.
Based on the current price of Bitcoin, assets seized from the Jian Wen case could now be worth around £5.4?billion ($6.8?billion).
U.K. Bitcoin Plans are Complicated
Criticizing the Telegraph’s reporting on the Home Office’s plans, Bitcoin Policy UK CEO Susie Violet Ward accused the newspaper of publishing “another lazy, clickbait Bitcoin article,” that offered “sensationalism over substance.”
“The UK’s bitcoin is still legally contested. Chinese authorities and victims are demanding it back. No sale can happen while that legal process is unresolved,” she observed.
Victims of the Lantian Gerui Ponzi scheme are actively seeking to recover the seized Bitcoin and have applied pressure on the British and Chinese authorities to support their cause.
“We do not want, and will never accept, a situation where Bitcoins are confiscated by the U.K. and not returned to us,” a letter they sent to the British Foreign Ministry in Beijing stated .
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