UK Faces Legal and Political Heat Over $7B Bitcoin Sale Plans
As crypto markets rebound, the UK Treasury is reportedly preparing to sell up to £5 billion ($6.7 billion) worth of seized Bitcoin—a move that could help plug a growing budget deficit but may spark international legal disputes and long-term policy concerns.
Government Eyes Record Crypto Sale
According to The Telegraph, Chancellor Rachel Reeves and the Home Office are coordinating with law enforcement to establish a secure framework for storing and selling the Bitcoin haul, which reportedly includes at least 61,000 BTC, valued at roughly $7.1 billion.
These assets stem from a 2018 seizure tied to a massive Chinese Ponzi scheme—one of the largest crypto-related seizures held by the UK.
Source: Susie Violet Ward
Legal Clouds Over Bitcoin Ownership
The planned sale faces legal opposition from victims of the 2018 Ponzi scheme operated by Tianjin Lantian Gerui Electronic Technology. The Bitcoin was seized when Jian Wen, a hospitality worker in the UK, attempted to launder the proceeds by purchasing a luxury mansion. She was convicted of three counts of money laundering in 2023 and sentenced to over six years in prison in May 2024.
Now, Chinese victims of the scheme and their government are demanding the UK return the Bitcoin. Critics argue that the British government cannot legally proceed with the sale while ownership remains contested.
“No sale can happen while that legal process is unresolved,” said Susie Violet Ward, CEO of Bitcoin Policy UK, who criticized the Treasury’s alleged plans as “sensationalism over substance.”
Crown Prosecution Service Pushes Back
The UK’s Crown Prosecution Service (CPS) has petitioned the High Court to retain the Bitcoin under proceeds of crime legislation, arguing that any sale would comply with existing law. If approved, the funds could be used to satisfy confiscation orders and potentially compensate victims, with remaining proceeds shared among agencies involved in the recovery effort—including the police and Treasury.
Freddie New, head of policy at Bitcoin Policy UK, clarified that the original victims lost yuan, not Bitcoin, raising diplomatic complexity as China reportedly seeks to recover BTC rather than its yuan equivalent.
Critics Warn of Short-Term Thinking
Crypto advocates are urging the UK government to reconsider. Jordan Walker, founder of Bitcoin Collective, published an open letter arguing that selling the assets to plug a budget hole could harm the UK’s long-term economic credibility.
“Selling these holdings to address a short-term budget deficit would send a concerning signal,” Walker warned. “It could have long-term consequences for the UK’s economic positioning.”
In July, Bitcoin Policy UK proposed a legal amendment to allow the government to retain seized crypto assets. Their suggestion was reportedly ignored.
In a separate development, the UK government terminated a £40 million ($53.7 million) tender for a “crypto storage and realisation framework” this month, after failing to attract bids that could meet its requirements for handling seized crypto.
Conclusion
While the UK explores offloading a $7 billion Bitcoin stockpile, unresolved ownership claims and political criticism may delay or derail the effort. The debate is more than fiscal—it’s about sovereignty, justice, and the nation’s role in a digital financial era.
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