The UK Insolvency Service has appointed its first crypto intelligence specialist to help recover crypto from bankruptcy and criminal cases.
Andrew Small, a former police investigator with a background in economic crime, will lead efforts to trace and reclaim crypto assets that haven’t been accounted for in those proceedings, according to a June 9 statement from the Insolvency Service.
It comes as the number of crypto-related insolvency cases in the UK has risen by 420% over the last five years, while the estimated value of crypto assets identified in insolvency cases has increased 364 times to 523,580 British pounds ($709,500) over the same time frame.
“There has been a rapid rise in crypto ownership in the UK, and alongside that, we’ve seen a similar rise in cryptoasset ownership in bankruptcy cases,” said Small, adding that crypto is “very much a recoverable asset.”
Everything from Bitcoin to memecoins and NFTs will seek to be recovered
The Insolvency Service is tasked with tracing and recovering money and assets from individuals or companies in insolvency cases, to return as much of the funds owed to creditors as possible.
Small said his role would entail providing specialist knowledge about the types of cryptocurrencies available and the associated technology used to buy, sell and store them.
The Insolvency Service said this could include anything from Bitcoin (BTC) and Ether (ETH) to memecoins like Dogecoin (DOGE) and non-fungible token artworks.
Related: UK closes ‘trust me bro’ crypto firm that gave horrible advice to clients
Insolvency Service’s head of intelligence, Neil Freebury, expects Small’s appointment to enhance collaboration and strengthen outcomes for investigators working on crypto asset ownership cases.
“His appointment will help our investigators dealing with cases where cryptoasset ownership is a factor.”
Crypto ownership in the UK is on the rise
A study from the UK’s Financial Conduct Authority last November found that 12% of UK adults owned crypto in 2024 — a significant increase from the 4% reported in 2021.
They hold an average value of up to 1,842 British pounds ($2,496).
UK to require crypto firms to report every customer transaction
The increased efforts to claw back crypto from bankruptcy cases come amid a broader push in the UK to more tightly regulate the crypto industry.
UK crypto companies will need to collect and report data from every customer trade and transfer beginning Jan. 1, 2026, as part of a broader effort to improve crypto tax reporting, the UK revenue and customs department said last month.
Everything from the user’s full name, home address, and tax identification number will need to be collected and reported for every transaction, including the cryptocurrency used and the amount moved.
The new rule is part of the UK’s integration of the Organisation for Economic Development’s Cryptoasset Reporting Framework to improve transparency in crypto tax reporting.
Magazine: AI cures blindness, ‘good’ propaganda bots, OpenAI doomsday bunker: AI Eye
Read the full article here
