The UK Insolvency Service on Monday named its first crypto intelligence specialist, marking a significant step within the authorities’s efforts to hint and get better digital property resembling Bitcoin from bankrupt people and prison circumstances.
Andrew Small, a former financial crime investigator with the police, will lead the cost as crypto possession turns into more and more frequent in insolvency proceedings.
His appointment displays a pointy rise within the quantity and worth of crypto-related circumstances over the previous 5 years. In 2024–25, the company recognized over £520,000 (about $660,000) price of crypto property throughout 59 insolvency circumstances, up from simply £1,436 (round $1,820) in 14 circumstances in 2019–20.
Insolvencies with crypto as asset up 420% in 5 years
— Insolvency Service (@insolvencygovuk) June 9, 2025
Insolvencies with crypto as asset up 420% in 5 years
Over £500,000 crypto in insolvency circumstances final 12 months
Ex-police investigator appointed to hint digital property in prison circumstances
Insolvency Service hires first crypto knowledgeable to assist get better funds from chapter circumstancesRising Crypto Possession Forces UK to Bolster Asset Restoration Capabilities
The transfer follows rising considerations about hidden or difficult-to-trace wealth in insolvency and enforcement work. With greater than 7m UK adults now holding some form of cryptocurrency, in accordance with the Monetary Conduct Authority, digital property have gotten a key a part of the private finance panorama. Because of this, they’re additionally exhibiting up extra ceaselessly in chapter and fraud investigations.
Small will function inside the Insolvency Service’s Investigation and Enforcement Providers staff, focusing totally on prison circumstances.
He’s anticipated to supply frontline investigators with technical steering on how digital property resembling Bitcoin, Ethereum and NFTs are saved, traded, and hid.
“There was a fast rise in crypto possession within the UK, and alongside that, we’ve seen the same rise in cryptoasset possession in chapter circumstances,” mentioned Small. “My function will assist the company by offering specialist information concerning the forms of cryptoassets obtainable and the related expertise used to purchase, promote and retailer them.”
New Crypto Function Goals to Shut Gaps in UK Asset Restoration Framework
The appointment is anticipated to have a big influence on crypto seizures, significantly Bitcoin.
Because the company strengthens its skill to detect and get better digital property, people and corporations going through insolvency or prison investigations will discover it more and more tough to cover wealth in cryptocurrencies.
For these making an attempt to make use of crypto as a defend, the dangers of detection and seizure are actually markedly larger.
Officers say the brand new function is a essential a part of returning extra worth to collectors. The company’s increasing mandate consists of tracing property, in addition to recovering them on behalf of collectors.
Neil Freebury, head of intelligence on the Insolvency Service, mentioned the rising complexity of asset holdings made it important to usher in consultants. “Andrew brings a wealth of data to this function,” he famous, including that his background would strengthen the company’s skill to take care of crypto-heavy circumstances.
The appointment alerts a extra aggressive and knowledgeable strategy to digital asset enforcement within the UK, at a time when regulators and courts globally are grappling with the challenges of decentralized finance.
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