The UK Home Office is building a framework to sell 61,245 BTC seized worth $7.23 billion to supplement the budget amid increasing financial pressure.
The UK government is preparing to conduct one of the largest cryptocurrency asset liquidations to date, with the Home Office planning to sell all bitcoin seized from criminal activities. According to a report from The Telegraph, this move is expected to bring significant revenue to the national treasury as Finance Minister Rachel Reeves faces budget balancing challenges.
Data from Arkham Intelligence shows that the 61,245 BTC currently held by the UK government is valued at 5.39 billion pounds, equivalent to $7.23 billion at current exchange rates. Most of this includes 61,000 BTC obtained from a 2018 raid related to a large-scale investment fraud in China. This is considered one of the most valuable digital asset seizures in global law enforcement history.
New Legal Framework for Digital Asset Liquidation
To ensure a safe and transparent asset sale process, the procurement agency within the Home Office is developing a centralized crypto asset storage and liquidation framework. This system will allow effective management of seized digital assets and optimize their market value when sold.
According to information from reporter James Titcomb, the liquidation contract is expected to generate commissions up to 40 million pounds for executing entities. This process follows principles of prioritizing victim reimbursement before distributing remaining funds between central budget and law enforcement program.
However, liquidation is not without challenges. Legal experts from Cardiff University warn that compensation claims from victims, especially from the 2018 fraud case, could complicate and prolong the process. Final decisions about selling specific assets remain under the authority of anti-crime agencies, adding another review layer to the process.
The Royal Treasury is closely monitoring the budget revenue potential from this sale, viewing it as a non-tax income source that could significantly contribute to addressing the current budget deficit.
