According to a report by The Telegraph, the UK Treasury and Home Office are co-ordinating with law enforcement agencies to sell over £5 billion ($6.7 billion) in seized Bitcoin. The funds would be used to help plug a growing budget deficit under the direction of Treasury head Rachel Reeves.
The plan includes building new crypto storage infrastructure to securely manage the assets during the sell-off process.
The seized Bitcoin reportedly comes from a 2018 bust of a Chinese Ponzi scheme operated by Tianjin Lantian Gerui Electronic Technology. UK authorities seized the crypto after Jian Wen, a hospitality worker, tried to buy a mansion in London using laundered BTC.
Wen was found guilty of money laundering in March 2024 and was sentenced in May to six years and eight months in prison. The total seized holdings are estimated to include at least 61,000 BTC, now valued at over $7.1 billion — one of the largest crypto seizures globally.
Victims of the Ponzi scheme, alongside Chinese authorities, are demanding the return of the Bitcoin, claiming they lost yuan and not BTC. The Chinese Foreign Affairs Ministry was formally asked to negotiate its return in April 2024.
Despite the Treasury’s intention to sell, the move faces a serious legal roadblock.
Source: Susie Violet Ward
Ward accused The Telegraph’s article of being misleading:
Crypto advocate Decentra Suze called the Telegraph report “sensationalism over substance,” criticizing its attempt to link the UK’s Bitcoin stockpile to budget politics amid a bull run.
The Crown Prosecution Service has asked the High Court to allow the UK to retain and liquidate the funds under the Proceeds of Crime Act. If approved, proceeds would go toward victim reimbursement, with the remainder split between police and the Treasury.
Reaction to the report:
According to Freddie New, head of policy at Bitcoin Policy UK, emphasized that any sale would only occur after court authorization, and only after paying back victims.
In July 2024, Bitcoin Policy UK wrote to the government urging lawmakers to amend national law and allow the UK to retain Bitcoin as a strategic asset. The suggestion was ignored.
Jordan Walker, founder of Bitcoin Collective, also issued a public letter in response to the report:
“Selling these holdings to address a short-term budget deficit would send a concerning signal.”
“It could have long-term consequences for the UK’s economic positioning.”