Bitcoin News Today: UK Plans 5 Billion Pound Bitcoin Sale to Boost Budget

The UK government is reportedly planning to sell over 5 billion British pounds ($6.7 billion) worth of seized Bitcoin to bolster its budget. This initiative involves collaboration between the Home Office, the Treasury, and law enforcement agencies to liquidate the government's stockpile of seized Bitcoin. The Treasury's involvement is driven by the recent rally in the crypto market, which has significantly increased the value of the government's holdings.

The exact amount of seized Bitcoin held by the UK is not publicly disclosed, but it is known to include at least 61,000 Bitcoin, currently valued at around $7.1 billion. These Bitcoin were seized in 2018 from a Chinese Ponzi scheme and have been held in the UK since then. The idea of selling this Bitcoin to address the country's budget deficit was first proposed earlier this year, with reports suggesting that the Treasury could use the proceeds to plug budget gaps.

However, the UK's plans to sell the Bitcoin face legal challenges. Victims of the Chinese Ponzi scheme have been seeking the return of the Bitcoin since 2024, and the legal process is ongoing. Susie Violet Ward, the CEO of the crypto lobby group Bitcoin Policy UK, criticized the reports as "sensationalism over substance," highlighting that the Bitcoin is still legally contested and that no sale can proceed until the legal process is resolved.

The UK seized the Bitcoin in 2018 after Jian Wen, a hospitality worker, attempted to launder funds from an investment scheme conducted by Tianjin Lantian Gerui Electronic Technology. Wen was later convicted of money laundering and sentenced to six years and eight months in prison. A group representing the Ponzi scheme’s victims has been negotiating with China’s Foreign Affairs Ministry to recover the Bitcoin.

The Crown Prosecution Service has requested the High Court to allow it to keep the seized Bitcoin, which could be sold and the proceeds split between law enforcement agencies. Freddie New, Bitcoin Policy UK’s head of policy, explained that any sale of the crypto would be conducted under proceeds of crime laws, which stipulate that assets will be sold to satisfy confiscation orders and compensate victims if ordered by a court. After costs and victim paybacks, the remaining funds would go to the Treasury and be split among the agencies involved in the asset recovery.

In May, the UK issued a tender for a 40 million British pound ($53.7 million) “crypto storage and realisation framework” to enable police to store and manage seized crypto. However, the tender was terminated earlier this month due to a lack of suitable bids. Bitcoin Policy UK had previously urged the government to amend the law to give it more discretion to retain the valuable asset, but this request was ignored. Jordan Walker, the founder of the crypto advocacy group Bitcoin Collective, also wrote an open letter to the government, advising against selling the Bitcoin, as it could have long-term consequences for the UK’s economic positioning.