The UK Government is Preparing to Liquidate at Least $7 Billion Worth of Seized Bitcoin, Leveraging the Record Price Increase to Supplement the Budget.
From the Bitcoin seized during the 2018 investigation, the UK plans to sell when Bitcoin price has reached a peak of over $123,000, aiming to address financial difficulties without raising taxes or cutting public spending.
- The UK government owns approximately 61,000 Bitcoin seized from the 2018 investigation.
- Bitcoin price surpassing $123,000 has raised the total value of Bitcoin to over $7 billion.
- Selling Bitcoin aims to fill the budget deficit of up to 20 billion pounds, avoiding tax increases.
How is the UK Government Preparing to Sell Seized Bitcoin?
According to Aidan Larkin, CEO of Asset Reality - a cryptoasset recovery expert, the UK has accumulated around 61,000 Bitcoin after a crackdown on a Chinese multi-level marketing model in 2018. Larkin emphasizes that digital assets will bring significant financial benefits to the public budget in the next 5-10 years.
The selling plan was accelerated when Bitcoin price reached a record high of over $123,000, creating an opportunity to maximize the value for the budget. Former Finance Minister Norman Lamont also recommended that the government should use this money immediately to support national finances.
"I believe digital assets will open up a large revenue source for government agencies and public funds in the near future."
Aidan Larkin, CEO Asset Reality, 2025
What are the Benefits and Impacts of High Bitcoin Prices on the UK's Selling Plan?
Bitcoin price surpassing $123,000 has raised the total value of the UK's 61,000 BTC to over $7 billion (about 5 billion pounds). This amount is currently a massive financial resource to help the government cover most of the budget deficit it is facing.
Financial experts analyze that selling at the highest Bitcoin price helps the government create an effective liquidation capital without relying on tax increases or cutting public spending that is causing significant social pressure.
Why is the UK Choosing to Sell Bitcoin at This Time?
In the context of the UK government facing pressure from a government budget deficit of 20 billion pounds and persistent inflation, Finance Minister Rachel Reeves is seeking new revenue sources. Selling seized Bitcoin is currently a viable solution to mitigate the impact of tax or spending policies on the people.
However, some officials warn about the risk of cryptocurrency price volatility that could cause damage if Bitcoin price suddenly reverses, leading to less-than-expected revenue or even losses.
What Steps is the UK Government Taking to Manage Bitcoin Sales?
The Home Office is developing a framework for "managing and liquidating cryptoassets" to ensure the safe and efficient sale and storage of seized Bitcoin. This will help minimize risks while increasing transparency and the ability to handle assets in subsequent investigations.
"Our goal is to build a transparent digital asset processing system that helps the government and law enforcement agencies manage seized assets in the most optimal way."
Senior Home Office Official, 2025
Frequently Asked Questions
Where Did the UK's Seized Bitcoin Originate?
The Bitcoin was mainly seized during the crackdown on a Chinese multi-level marketing model in 2018, with over 61,000 BTC confiscated.
What is the Current Total Value of These Bitcoins?
With Bitcoin price over $123,000, 61,000 BTC is worth around over $7 billion, equivalent to 5 billion British pounds.
How Will Selling Bitcoin Help the UK Government?
It will help fill the 20 billion pound budget deficit, limiting tax increases or cuts in public spending.
What are the Risks of Government Bitcoin Sales?
Strong cryptocurrency price volatility could cause financial damage if not sold at the right time.
What Has the Government Done to Manage These Cryptoassets?
It is developing a framework for liquidation and management of cryptoassets to ensure safety and efficiency.
