Investigation: UK authorities have frozen nearly $7.7 million in illegal crypto assets within a year

ChainCatcher news, a MailOnline investigation shows that since April 2024, UK authorities have frozen illegal cryptocurrency assets worth approximately $7.7 million (£6 million).

Last year, the UK revised relevant regulations, granting the National Crime Agency (NCA) and police special powers to freeze, seize, and destroy cryptocurrencies associated with crime and criminals. These powers allow the police to freeze cryptocurrency wallets for up to three years. If the court is convinced that these funds originate from illegal sources or will be used for criminal purposes, officials can also seize these assets. This special power also enables law enforcement to seize any cryptocurrency wallets suspected of being linked to criminal organizations without the need for an arrest. Authorities have also been granted the power to destroy these assets if they believe that reintroducing the seized cryptocurrency into circulation "is not in the public interest." This may include privacy coins commonly used by criminals to obscure the source of funds.

According to court documents analyzed by MailOnline, the largest freezing order was issued for a wallet held on Coinbase. This wallet contains tokens worth $1.94 million (£1.5 million). The freezing order was issued by the Newcastle upon Tyne Magistrates' Court on March 18. The court order was applied for by HM Revenue and Customs (HMRC), indicating that the case may be related to tax evasion. The identity of the wallet owner remains a mystery.