U.K. Freezes $7.7 Million in Illicit Crypto Assets to Combat Crime

U.K. authorities have frozen approximately $7.7 million worth of illicit cryptocurrencies since April 2024, as part of a growing effort

The U.K. authorities have frozen an estimated $7.7 million in illicit cryptocurrencies since April 2024, according to an internal report by the government.

The figures, which are still being finalized, highlight the country’s increasing efforts to combat cryptocurrency-related crime.

The report, prepared for the Treasury, also sheds light on the new powers that the British police have gained to seize and destroy digital assets.

The data, collected by the Economic Crime Command at the City of London Police, showcases the magnitudes of the recent cases. The report period commenced on April 1, 2024, and continues to date.

The largest frozen crypto wallet was spotted on Coinbase (NASDAQ:COIN) and contained $1.94 million (£1.5 million) in tokens. This order was issued by the Newcastle Upon Tyne Magistrates’ Court on March 18, following a request by His Majesty’s Revenue and Customs (HMRC). The case might be related to tax evasion, and the identity of the wallet’s owner remains undisclosed.

Earlier this year, the U.K. amended its laws to grant the National Crime Agency (NCA) and local police enhanced powers to freeze, seize, and destroy crypto assets linked to criminal activities.

These new regulations provide the police with the authority to freeze crypto wallets for a period of up to three years, and they can seize funds if a court is convinced that they originated from illicit sources or were destined for criminal use.

Moreover, this legislation enables law enforcement to target crypto wallets suspected of being tied to criminal organizations without the need for arrests, simplifying the process of disrupting illegal financial networks.

Additionally, authorities can destroy seized cryptocurrencies, especially privacy coins which are frequently employed to mask illicit activities.

Recently, The U.S. Department of Justice (DOJ) has successfully seized approximately $201,400 in cryptocurrency, which is alleged to have been used for funding the activities of the terrorist organization Hamas.