Bitcoin News Today: UK Treasury Plans £5 Billion Bitcoin Sale to Tackle Budget Deficit

Generated by AI AgentCoin World
Monday, Jul 21, 2025 5:22 am ET1min read
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Aime RobotAime Summary

- UK Treasury plans to sell £5B in seized Bitcoin to address budget deficit, leveraging recent crypto market gains.

- Assets include 61,000 BTC from a 2018 Chinese Ponzi scheme, now valued at $7.2B amid victims' restitution demands.

- Legal challenges arise as victims claim ownership, while Crown Prosecution Service seeks court approval to retain and sell the assets.

- Critics question ethical implications of selling victim-owned assets, with policy experts highlighting complex proceeds-of-crime law hurdles.

The UK Treasury is exploring the sale of over £5 billion ($6.7 billion) in seized

Bitcoin
to address the country’s budget deficit. This initiative is driven by the recent surge in the cryptocurrency market, which has boosted the value of the government’s holdings. The Chancellor of the Exchequer, Rachel Reeves, and the Home Office are working closely with law enforcement to execute this plan.

The Bitcoin in question includes at least 61,000 BTC seized from a Chinese Ponzi scheme in 2018. The value of these assets, given the current Bitcoin price, exceeds $7.2 billion. However, the sale faces potential complications due to the demands of the victims of the Ponzi scheme, who have been calling for the return of their Bitcoin since 2024. The victims argue that the seized assets rightfully belong to them and should be returned rather than sold by the government.

The Crown Prosecution Service has requested the High Court to allow it to retain ownership of the seized Bitcoin. If approved, the Bitcoin could be sold and the proceeds distributed among various law enforcement agencies. This request has sparked debate, with critics questioning the ethical implications of selling assets that were seized from victims of fraudulent activities.

Freddie New, the head of policy at a crypto lobby group, has stated that any sale of the seized cryptocurrency would likely fall under the proceeds of crime law. This legal framework could complicate the process, as it may require the government to demonstrate that the sale is in the best interest of the victims and the public.

The potential sale of the seized Bitcoin highlights the complex interplay between government finances, law enforcement, and the rights of victims in the cryptocurrency space. As the UK government navigates these challenges, it will need to balance its fiscal needs with the ethical considerations of returning seized assets to their rightful owners. The outcome of this situation will set a precedent for how governments handle seized cryptocurrency in the future.