U.K. Freezes $7.7M in Crypto Under New Anti-Crime Powers

Crypto

U.K. Freezes $7.7M in Crypto Under New Anti-Crime Powers

• UK officials have frozen $7.7M in illicit crypto since April 2024.
• The largest freeze order targeted a $1.94M Coinbase wallet.

UK officials have frozen nearly $7.7 million (£6 million) worth of illicit crypto assets in one year. The crackdown follows new powers granted to law enforcement in April 2024. These powers allow the National Crime Agency (NCA) and police to freeze, seize, and destroy crypto linked to crime.

The biggest freeze order targeted a wallet containing $1.94 million (£1.5 million) in cryptocurrency. This wallet, hosted on Coinbase, was frozen by the Newcastle Upon Tyne Magistrates‘ Court on March 18. The request came from His Majesty’s Revenue and Customs (HMRC), suggesting a link to tax evasion. The identity of the wallet owner remains unknown.

Cryptocurrency has become a tool for money laundering and terrorism financing. UK authorities have responded by using their new legal powers aggressively. These allow officials to freeze wallets for up to three years. If the court finds the funds linked to criminal activities, they can be seized. In some cases, seized crypto can be destroyed if deemed harmful to the public.

More Crypto Freezes Expected as Crackdown Grows

Experts believe that more crypto freeze orders are coming. Lawyer Siobhain Egan expects a “tsunami” of such actions as authorities ramp up efforts. She noted that police can freeze wallets before investigations conclude. This strategy prevents suspects from moving funds. The freeze order also forces recipients to answer official questions, strengthening the case against them.

Nick Barnard, a legal expert, stated that the UK started these laws from scratch. He believes officials need more time to catch up in this fast-moving space. However, he acknowledged that freezing crypto held on centralized exchanges is practical. Private wallets, secured by personal keys, remain difficult to access.

Most of the frozen wallets belong to foreign nationals, complicating enforcement. Investigators lack of crypto knowledge also poses a challenge. Barnard pointed out that traditional money laundering methods still dominate. Cryptocurrency makes up a small portion of illicit financial activity compared to cash-based schemes.