UK Arrests Three in £15M Crypto Scam, Seizes Assets

Three individuals have been arrested in connection with a significant cryptocurrency scam investigation in the UK. The Metropolitan Police’s Economic Crime Command led the operation, known as Operation Galafarm, which targeted members of the public with fraudulent investment opportunities. The alleged scam involved more than £15 million ($20 million) in stolen funds, which were reportedly laundered through a network of shell companies.

Search warrants were executed at six locations across London, resulting in the detention of two men, aged 24 and 36, in Hackney, east London, on May 7. A third individual, also 36 years old, later surrendered to authorities. All three suspects have since been released on bail pending further investigations.

This operation highlights the increasing efforts by UK law enforcement agencies to combat crypto-related crimes. The government has recently granted police forces and the National Crime Agency enhanced powers to seize, freeze, and destroy digital assets used in criminal activities. These measures are part of a broader strategy to address the growing threat of illicit crypto transactions, which are estimated to be linked to the UK annually.

Despite the significant amount of Bitcoin seized from criminals, the UK government has no plans to establish a strategic Bitcoin reserve, unlike some other countries. Emma Reynolds MP, the Economic Secretary to the Treasury, confirmed this stance, stating that such a move is not appropriate for the UK market. The government's decision comes amid ongoing debates about the management of seized digital assets and their potential impact on public finances, especially in light of recent welfare cuts.