Yigit Taha OZTURK 
In the world of digital assets, few developments draw as much attention as governments stepping in to liquidate massive crypto holdings. The UK Home Office is now planning such a move, with a reported $7 billion Bitcoin stockpile under review for sale. This development could carry weighty implications for both public finances and regulatory direction.
61,000 BTC Seized in Ponzi Scheme Investigation
According to The Telegraph, the UK’s Home Office, in collaboration with law enforcement, is working toward selling a large crypto reserve seized from criminal activity. A major portion of the stockpile — 61,000 Bitcoin — was confiscated from a Chinese Ponzi scheme operating in the UK in 2018.
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A woman linked to the case was sentenced to over six years in prison in 2024 for laundering 150 BTC. Although victims are demanding the return of the funds, the Crown Prosecution Service has petitioned the High Court to retain the seized BTC and transfer the funds to the Treasury after liquidation.
Chancellor Eyes Crypto Sale Amid Budget Gaps
The move has reportedly gained the attention of Chancellor of the Exchequer Rachel Reeves. Facing a substantial budget shortfall, Reeves said in April that she supports working with the United States to establish clearer regulatory frameworks for crypto assets.
“Robust rules around crypto will boost investor confidence, support the growth of Fintech, and protect people across the UK,” Reeves previously stated.
As part of the effort, a police-owned procurement company, BlueLight Commercial, issued a $53.7 million tender for a centralized system to securely store and sell seized crypto. However, no qualifying bids have been accepted so far.
Legal Delays May Stall Liquidation Timeline
The greatest challenge remains the legal clearance process. According to the tender documents, the average time from seizure to sale of digital assets is about one year — but for complex cases, it may stretch to three or four years. Therefore, despite forward steps, the actual sale could face significant delays.
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