The UK’s Insolvency Service has appointed its first
dedicated crypto intelligence specialist in response to a sharp rise in
bankruptcy and criminal cases involving digital assets such as Bitcoin and
Ethereum. The move comes as the agency reports a 420% increase
in insolvency cases where crypto is identified as a recoverable asset.
Andrew Small, a former police investigator with a
background in economic crime, will take on the new role within the agency’s
Investigation and Enforcement Services team.
His work will focus on helping the Insolvency Service
trace, assess, and recover crypto holdings from individuals and companies
subject to insolvency proceedings.
Crypto Recoveries on the Rise
Figures from the Insolvency Service show the scale of
the issue. In the 2024/25 financial year, the agency identified £523,580 in crypto
assets across 59 insolvency cases. That compares to just £1,436 across 14 cases
in 2019/20.
“There has been a rapid rise in crypto ownership in
the UK, and alongside that, we’ve seen a similar rise in crypto asset ownership
in bankruptcy cases,” commented Small.
“The Insolvency Service has a duty to trace and
recover money and assets from individuals or companies in insolvency cases, and
we work to return as much money owed to creditors as possible,” he explained.
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The agency noted that the increased recovery of crypto
assets will support its efforts to return more money to creditors. The appointment also reflects the wider adoption of
digital assets in the UK. According to research by the Financial Conduct
Authority, around 7 million UK adults, 12% of the population, held some form of
crypto in 2024. That’s up from 3.2 million in 2021.
These holdings include mainstream cryptocurrencies
like Bitcoin, Ethereum, and Litecoin, as well as digital tokens and
non-fungible tokens.
Criminal Cases Under Review
While Small will support all insolvency proceedings
involving crypto, his role will focus heavily on criminal cases, where digital
assets are often used to hide or move funds.
“Crypto is very much a recoverable asset, and my role will help the agency by providing specialist knowledge about the types of cryptoassets available and the associated technology used to buy, sell and store them,” Small explained.
This article was written by Jared Kirui at www.financemagnates.com.
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