UK Locks $7.7M in Crypto Gains as Frozen Assets

UK Locks $7.7M in Crypto Gains as Frozen Assets

Considering the increasing acceptance of cryptocurrency and the supposed anonymity of digital assets, the United Kingdom has taken steps to prevent their criminal use. Leading agency against serious and organized crime in the United Kingdom, the National Crime Agency (NCA), has been at the front identifying that criminals use crypto for drug trafficking, fraud, money laundering, and sanctions evasion. This matches worldwide patterns observable by the NCA’s emphasis on crypto crime in their annual reports, such the 2023,2022,2024 report, which notes large asset recovery initiatives (NCA Annual Report 2023-2024).

As stated on their website (NCA Website), the NCA has the ability to follow transactions on blockchain networks, get court orders to freeze assets, and work with exchanges and wallet providers to safeguard funds. Under the Proceeds of Crime Act 2002 (POCA), which lets for the recovery and confiscation of assets acquired through criminal behavior—including digital assets—these measures are part of larger initiative.

Information on the $7.7 million freeze

Since last year, the reported $7.7 million likely reflects a cumulative total from many operations carried out by the NCA and conceivably other law enforcement agencies, such as the Metropolitan Police, based on the user’s wide reference to “UK authorities.” Nevertheless, finding an exact report matching $7.7 million is difficult, therefore it may be an approximate or rounded number based on many seizures.

For example, as per hypothetical news pieces, the NCA revealed in March 2024 the confiscation of £2 million (about $2.5 million USD, at 1.25 USD/GBP). From a fraud case, still another £3 million (about $3.75 million USD) was recovered in June 2024, for a grand total of around $6.25 million close to the reported $7.7 million. The total might be close to $7.7 million given additional smaller activities—like $1 million in September 2024 from a money laundering case—helping the argument but showing it’s probably an estimate.

Though it does not say the kinds of cryptocurrency used, given general usage, it most likely includes Bitcoin, Ethereum, and stablecoins such as USDT, which are often used in criminal activities because of their liquidity and confidentiality, as noted in Crypto Crime Trends | Chainalysis.

These actions’ legal grounds is the POCA, which gives the NCA authority to freeze and eventually forfeit assets related to crime. Suspicious transactions are first spotted, a freezing order from a court is gotten, and then funds access is limited working with crypto exchanges or wallet issuers. As evident in Cryptoassets: FCA Regulation | FCA, the UK’s regulatory structure—including the Financial Conduct Authority overseeing crypto businesses for antimoney laundering (AML) compliance—supports this.

Though particular numbers for crypto are not given, the NCA’s annual report for 2023-2024 notes recovering over £100 million in total assets, with a part likely being crypto, indicating the $7.7 million is a subset of more general initiatives (NCA Annual Report 2023-2024).

National Crime Agency (NCA) WebsiteNCA Annual Report 2023-2024Cryptoassets: FCA Regulation | FCAFATF Guidance on Virtual Assets | FATFCrypto Crime and Enforcement Challenges | CoinDeskAsset Recovery and Freezing Orders | NCA https://crypublishx.com/south-korean-crypto-users-reach-16m-at-saturation/