UK Seeks to Retain Seized Bitcoin Amidst Victim Repatriation Efforts
In a developing situation, the UK’s Crown Prosecution Service is petitioning the High Court to allow it to keep Bitcoin seized from a Ponzi scheme, potentially leading to the funds being sold and distributed among law enforcement agencies. This move comes as victims of the scheme, who lost yuan, have reportedly appealed to China’s Foreign Affairs Ministry to negotiate with the UK for the recovery of the Bitcoin.
Wen, who was found guilty of three counts of money laundering in March of last year and afterward jailed for six years and eight months in May 2024, was implicated in the Ponzi scheme.
Freddie New, head of policy at Bitcoin Policy UK, explained on X that any sale of the seized cryptocurrency would be conducted under proceeds of crime laws. These laws stipulate that assets are sold “to satisfy confiscation orders” and to compensate victims, if a court mandates it. New highlighted a key detail: the victims originally lost yuan, not Bitcoin. He also noted the ongoing diplomatic efforts to potentially secure the Bitcoin for the victims.
According to New,after accounting for costs and victim reimbursements,any remaining funds would be transferred to the Treasury and could be allocated to entities involved in asset recovery,such as the police.
The UK recently attempted to establish a “crypto storage and realisation framework” valued at £40 million ($53.7 million) to facilitate the storage and management of seized crypto by police. However, this tender was terminated earlier this month due to a lack of suitable bids.
Bitcoin Policy UK had previously urged the government in July 2024 to amend legislation to grant more discretion in retaining such valuable assets, a plea that reportedly went unheeded.
In a similar vein, Jordan Walker, founder of the crypto advocacy group Bitcoin Collective, penned an open letter to the government, imploring them not to sell the Bitcoin. Walker cautioned that liquidating these holdings to address short-term budget deficits could send a “concerning signal” and have “long-term consequences for the UK’s economic positioning.”
