• The UK government is considering selling over $6.4 billion in seized crypto assets, including 61,000 BTC tied to a Ponzi scheme.
  • A $53.7 million contract is open for bids to operate a centralized system for storing and selling seized crypto.

The UK government is preparing to sell off a significant portion of its seized cryptocurrency holdings, currently valued at over $6.4 billion, according to The Telegraph.

The Home Office is considering the move as the country faces rising national borrowing costs, slow economic growth, and reduced welfare cuts under Prime Minister Keir Starmer.

Authorities are inviting bids from companies to run a centralized system for storing and selling seized digital assets.

The contract, issued by police-owned procurement company Blue Light Commercial, is valued at up to $53.7 million and will last a minimum of four years.

While the total amount of crypto held by the UK is undisclosed, at least 61,000 BTC were seized in connection to a Ponzi scheme operated by Chinese fraudsters. Victims are currently seeking the return of these assets.

However, the Public Prosecutor’s Office has asked the High Court to allow the transfer of the bitcoins to the Ministry of Finance.

According to the tender notice, most seizures are resolved in under a year, but more complex cases can take up to four.

Bitcoin journalist Decentra Suze noted that authorities will not sell any seized crypto until legal proceedings are complete.

Aidan Larkin, CEO of asset seizure firm Asset Reality, said, “In terms of illegal activity, we have oil flowing beneath our feet in the form of cryptocurrency, with seizures potentially pumping hundreds of millions of pounds into the UK every year.”

Other countries have taken similar steps. Germany sold 50,000 BTC in July 2024, earning $2.88 billion, while Bulgaria sold 213,500 BTC in 2018 for $3.5 billion, though those holdings would be worth over $25 billion today.

Edited by Annette George