UK freezes millions in crypto since implementing new powers

According to an investigation by MailOnline, UK authorities have frozen approximately £6 million ($7.7 million) in crypto since new enforcement powers came into effect last year.

The measures, introduced in April 2024, allow police, law enforcement agencies, and HMRC to freeze suspicious cryptocurrency wallets for up to three years.

Court documents reviewed over the past six months reveal the largest single freezing order was for £1.5 million worth of cryptocurrency held in a wallet hosted by US-based exchange Coinbase.

HMRC requested this order and issued it at Newcastle Upon Tyne Magistrates’ Court on March 18.

The total frozen amount could be higher, as court data from Courtsdesk only covers the past six months due to legal restrictions. The new powers were designed to address the growing use of digital currencies for money laundering, tax evasion, and terrorism financing.

Legal expert says £6 million is a modest amount

Legal experts offer differing perspectives on the importance of these seizures. Nick Barnard, a cryptocurrency legal specialist and partner at Corker Binning, described the £6 million figure as relatively modest “in the grand scheme.” Barnard noted that the new enforcement regime started from scratch last April and needs time to develop fully.

However, lawyer Siobhain Egan told MailOnline that the government is directing increased resources toward freezing cryptocurrency assets. This is part of an aggressive strategy to combat money laundering and terrorism financing, Egan adds.

The freezing process usually involves investigators applying for orders without notifying the alleged criminals. This prevents them from moving Bitcoin ( BTC ) or other crypto.

“If police have a major investigation into organized criminals laundering money through crypto, they will go in and seize the assets before they finalize the investigation,” Egan explained .

The UK government is improving its cryptocurrency enforcement actions through the Crime and Policing Bill. The legislation includes provisions for valuing cryptocurrency, implementing procedures for courts to recover illicit funds, and granting the Crown Court expanded powers to issue seizure orders.