UK Eyes $7B Seized Bitcoin Sale To Boost Budget: Report

According to reports, the UK plans on selling over 6 billion British Pounds ($6.7 billion) of Bitcoin seized in order to fill the budget deficit.

Rachel Reeves is the director of Treasury at the Home Office. She has been working closely with the law enforcement agencies to liquidate the stockpiles of Bitcoin seized by the government.BTCThe Telegraph reports that The Telegraph is working on a new system for storing crypto in order to deal with the selling off. reported This Saturday

This sale may have a negative impact on the recently revived Bitcoin and crypto rally.

The UK police handle the sale of crypto, however, the Treasury has reportedly been involved, as the cryptocurrency market is on the rise, increasing the value the government holds. 

It is unknown how much Bitcoin is held by the UK, but at least 61,000 Bitcoins, worth $7.1 billion today, were seized in 2018 from a Chinese Ponzi Scheme that had been operating in the UK.

Earlier in the year, there was a proposal to sell Bitcoins by the UK. yearThe Daily Mail, The Times reporting Reeves told the media in January that the Bitcoins he had stored could be sold to fill the country’s deficit.

Cointelegraph contacted HM Treasury in order to obtain a response.

UK wants to return Bitcoins to Ponzi-victims

The victims of Chinese Ponzi schemes, who are seeking to return the Bitcoins since 2024, could halt the UK’s plan to sell Bitcoins. 

“The UK’s bitcoin is still legally contested,” Susie Violet Ward is the CEO of Bitcoin Policy UK. said in a blog post published on X Sunday, slamming as “sensationalism over substance.”

“Chinese authorities and victims are demanding it back. No sale can happen while that legal process is unresolved,” She added.

In 2018, the UK confiscated Bitcoin after Jian Wen, a hotel worker, attempted to launder money from an investment scheme run by Tianjin Gerui electronic Technology. trying to buy a mansion BTC can be used to buy goods and services.

Wen later faced three charges of money laundering which she denied but was found guilty last March. and jailed Six years, eight months and May 2024. 

Group representing victims of Ponzi schemes asked China’s Foreign Affairs Ministry Negotiations with the UK will begin in April 2020 to recover Bitcoin. 

UK to retain Bitcoins seized

Crown Prosecution Service asked High Court for permission to retain the Bitcoin taken from this scheme. Funds could then be split and sold between the law enforcement agencies.

Freddie New is the head of Bitcoin Policy UK. He posted on X Sunday, that any sales of crypto will happen in accordance with proceeds of crime laws. These laws dictate that assets are sold. “to satisfy confiscation orders” And compensate victims, if ordered by the courts.

“We understand that the victims here lost yuan, NOT Bitcoin. There’s an extra wrinkle here in that we also understand there may be diplomatic efforts underway to ask for the Bitcoin rather than the yuan which was originally lost,” He also added.

New claimed that any remaining funds, after the costs of victim compensation and the Treasury would go could be split up between “those bodies involved in the asset recovery,” Such as police.

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In May the UK released to tender A 40 Million British Pounds ($53.7M) “crypto storage and realisation framework” It was to enable police to manage and store crypto. This was done to allow police to store and manage crypto seized. terminated Earlier this month, the government announced that it had not received any bids to meet the requirement.

UK urged again to stockpile Bitcoin

New Bitcoin Policy UK wrote in July of 2024 to the UK government, asking it to amend law. “to give themselves more discretion to retain this valuable asset,” What he claimed was ignored.

Jordan Walker, founder of crypto advocacy group Bitcoin Collective wrote an open note to the government, urging them not to sell Bitcoins in the light of The Telegraph report.

“Selling these holdings to address a short-term budget deficit would send a concerning signal,” He said that it was possible. “long-term consequences for the UK’s economic positioning.”

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