UK Appoints First Crypto Intelligence Specialist Amid 420% Surge in Insolvency Cases

The UK government has taken a proactive step in addressing the growing use of cryptocurrencies by appointing Andrew Small, a former police investigator, as the first crypto intelligence specialist within the Insolvency Service. This appointment is a response to the increasing number of insolvency cases involving digital assets, which have surged by 420% over the past five years. Small's role will focus on tracing and recovering cryptocurrency in bankruptcy cases, a task that has become increasingly complex due to the rise in crypto ownership among the UK population.

Small's expertise as a former economic crime investigator positions him well to navigate the challenges of digital asset recovery. His appointment underscores the Insolvency Service's commitment to enhancing its capabilities in handling cryptocurrency-related insolvency cases. The agency is responsible for tracing and recovering money and assets from individuals or companies in insolvency, ensuring that as much money as possible is returned to creditors. Small's role will provide the agency with detailed knowledge of the crypto market, including the types of cryptoassets available and the technology used to buy, sell, and store them.

The appointment of Small is a strategic move to address the growing popularity of cryptoassets. According to the Financial Conduct Authority, seven million adults in the UK, or 12% of the population, held some form of crypto in 2024, up from 3.2 million adults in 2021. This includes various types of cryptocurrencies such as Bitcoin, Litecoin, DOGE, and Ethereum, as well as online tokens and non-fungible tokens (NFTs). The rise in crypto ownership has led to a similar increase in cryptoasset ownership in bankruptcy cases, making Small's role crucial in recovering these assets.

Neil Freebury, head of intelligence at the Insolvency Service, highlighted the significance of Small's appointment. He noted that the number of insolvency cases involving cryptoasset ownership has risen four-fold in the past five years. Freebury praised Small's wealth of knowledge and previous experience as an economic crime investigator, stating that his appointment will greatly assist investigators dealing with cases where cryptoasset ownership is a factor. The Insolvency Service's proactive approach to addressing the challenges posed by cryptoassets in insolvency cases is a testament to its commitment to recovering assets and returning them to creditors. By appointing a dedicated crypto intelligence specialist, the agency aims to stay ahead of the curve in an ever-evolving financial landscape, ensuring that it can effectively trace and recover digital assets in an increasingly digital world.