{"id":14237,"date":"2025-07-21T07:24:49","date_gmt":"2025-07-21T05:24:49","guid":{"rendered":"https:\/\/wsj-crypto.com\/?p=14237"},"modified":"2025-07-21T07:24:49","modified_gmt":"2025-07-21T05:24:49","slug":"uk-considers-7-billion-bitcoin-sale-to-strengthen-budget-report-reveals","status":"publish","type":"post","link":"https:\/\/wsj-crypto.com\/index.php\/2025\/07\/21\/uk-considers-7-billion-bitcoin-sale-to-strengthen-budget-report-reveals\/","title":{"rendered":"UK Considers $7 Billion Bitcoin Sale to Strengthen Budget, Report Reveals"},"content":{"rendered":"

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The UK is reportedly considering the liquidation of over 5 billion British pounds ($6.7 billion) in confiscated Bitcoin to aid in addressing a shortfall in the nation\u2019s budget.<\/p>\n

The Home Office and the head of the nation\u2019s Treasury, Rachel Reeves, are collaborating with law enforcement to divest its collection of confiscated Bitcoin (BTC<\/a>) and aim to establish a framework for storing the cryptocurrency to facilitate the disposal, The Telegraph reported<\/a> on Saturday.<\/p>\n

This sale could likely impact a recently rejuvenated Bitcoin and cryptocurrency surge.<\/p>\n

Local law enforcement is responsible for cryptocurrency transactions in the UK, though the Treasury is said to have a role as the crypto market has surged, elevating the worth of the government\u2019s assets.\u00a0<\/p>\n

The precise quantity of seized Bitcoin held by the country remains uncertain, but it includes no less than 61,000 Bitcoin, presently valued at approximately $7.1 billion, confiscated from a Chinese Ponzi operation in 2018 that was stored in the UK.<\/p>\n

The concept of the UK liquidating its Bitcoin was suggested earlier this year<\/a>, with The Daily Mail and The Times reporting<\/a> in January that Reeves might liquidate the Bitcoin reserve to bridge the fiscal gap.<\/p>\n

Cointelegraph reached out to HM Treasury for a statement.<\/p>\n

Ponzi victims demand UK return Bitcoin<\/h2>\n

Nevertheless, the UK\u2019s scheme to sell the Bitcoin could be stalled by the victims of a Chinese Ponzi scheme, who have been requesting the restitution of the Bitcoin since 2024.\u00a0<\/p>\n

\u201cThe UK’s Bitcoin remains legally disputed,\u201d Susie Violet Ward, the CEO of the crypto advocacy group Bitcoin Policy UK, stated<\/a> in a post on X on Sunday, criticizing the article as \u201csensationalism over substance.\u201d<\/p>\n

\u201cChinese authorities and victims are demanding its return. No sale can occur while that legal matter is unresolved,\u201d she added.<\/p>\n

Source: <\/em>Susie Violet Ward<\/em><\/a><\/figcaption><\/figure>\n

The UK confiscated the Bitcoin in 2018 after hospitality worker Jian Wen tried to launder proceeds from an investment scheme operated by Tianjin Lantian Gerui Electronic Technology by attempting to purchase a mansion<\/a> with BTC.<\/p>\n

Wen was subsequently charged with three counts of money laundering, which she refuted, but was convicted in March of the previous year and imprisoned<\/a> for six years and eight months in May 2024.\u00a0<\/p>\n

A group advocating for the Ponzi scheme\u2019s victims requested China\u2019s Foreign Affairs Ministry<\/a> in April 2024 to engage with the UK to retrieve the Bitcoin.\u00a0<\/p>\n

UK wants to retain seized Bitcoin<\/h2>\n

In the meantime, the Crown Prosecution Service has requested the High Court to permit it to retain the Bitcoin confiscated from the scheme, which may result in the assets being sold and divided among law enforcement entities.<\/p>\n

Freddie New, Bitcoin Policy UK\u2019s head of policy, shared on X on Sunday that any liquidation of the cryptocurrency would occur under proceeds of crime regulations, which stipulate that assets will be sold \u201cto fulfill confiscation orders\u201d and provide restitution to victims if mandated by a court.<\/p>\n

\u201cWe recognize that the victims here lost yuan, NOT Bitcoin. There\u2019s an added complexity here in that we also understand there may be diplomatic initiatives underway to request the Bitcoin instead of the yuan which was initially lost,\u201d he added.<\/p>\n

New remarked that after expenses and victim compensations, the residual funds allocated to the Treasury might be distributed among \u201cthose entities involved in the asset recovery,\u201d including the police.<\/p>\n

Related: <\/strong><\/em>UK elections: How crypto donation risks are dividing MPs<\/strong><\/em><\/a><\/p>\n

In May, the UK issued a tender<\/a> for a 40 million British pound ($53.7 million) \u201ccrypto storage and realization framework\u201d to enable police to store and manage confiscated cryptocurrency. This was terminated<\/a> earlier this month after the government announced it had not received proposals that could meet the requirements.<\/p>\n

UK again urged to accumulate Bitcoin<\/h2>\n

New stated that Bitcoin Policy UK wrote to the government in July 2024, urging it to modify the legislation \u201cto provide themselves with more flexibility to retain this valuable asset,\u201d which he acknowledged was overlooked.<\/p>\n

Jordan Walker, the founder of the crypto advocacy organization Bitcoin Collective, penned an open letter to the government urging it not to divest the Bitcoin considering The Telegraph\u2019s report.<\/p>\n

\u201cDisposing of these assets to address a temporary budget shortfall would convey a troubling message,\u201d he asserted, adding it could have \u201clong-term implications for the UK\u2019s economic stability.\u201d<\/p>\n

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