Insolvency Service Appoints Crypto Specialist Amid 420% Case Surge

The Insolvency Service has appointed its first dedicated crypto intelligence specialist, Andrew Small, to enhance its capabilities in recovering digital assets from insolvency cases. This move comes as the number of insolvency cases involving cryptocurrencies has surged by 420% over the past five years, with 59 cases in 2024/25 compared to just 14 in 2019/20. The estimated value of cryptoassets identified in these cases has also skyrocketed, increasing by 364 times from just over £1,400 in 2019/20 to more than £520,000 in 2024/25.

Small, a former police investigator, will leverage his expertise to track digital assets in criminal cases and provide the agency with detailed knowledge of the crypto market. His role is crucial as the Insolvency Service is responsible for tracing and recovering money and assets belonging to bankrupt individuals or liquidated companies in insolvency proceedings. The appointment underscores the growing importance of cryptocurrencies in the financial landscape and the need for specialized expertise to navigate the complexities of digital asset recovery.

Cryptocurrencies have seen a rapid rise in ownership, with 2024 research finding that seven million adults in the UK, or 12% of the population, held some form of crypto. This includes various types of cryptocurrencies such as Bitcoin, Litecoin, DOGE, and Ethereum, as well as online tokens and NFTs. The Official Receiver Service, a key part of the Insolvency Service, identified £523,580 of cryptoassets across 59 insolvency cases in 2024/25, highlighting the increasing prevalence of digital assets in insolvency proceedings.

Small's new role is based within the Insolvency Service’s Investigation and Enforcement Services team, focusing primarily on cryptoasset ownership in criminal cases. Neil Freebury, head of intelligence at the Insolvency Service, emphasized the importance of this appointment, stating that Small's expertise will significantly enhance the agency's ability to deal with cases involving cryptoasset ownership. This move is expected to improve the recovery of money owed to creditors in insolvency cases, ensuring that more assets are returned to their rightful owners.

The Insolvency Service's proactive approach in appointing a dedicated crypto specialist reflects its commitment to adapting to the evolving financial landscape. As cryptocurrencies continue to gain popularity and become more integrated into the global economy, the need for specialized knowledge in this area has become increasingly apparent. Small's background as a police investigator will be invaluable in applying investigative techniques to the unique challenges posed by digital assets, helping the agency stay ahead of the evolving tactics used by criminals to hide their assets in the digital realm.