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Massive Bitcoin Sale Eyed By UK Government
The UK Home Office is working with police to sell off its stockpile of seized Bitcoin and is currently designing a framework to securely hold the crypto ahead of the planned liquidation, according to a July 19 report from The Telegraph.
While the total amount of all crypto confiscated by the UK is still unclear, the stockpile consists of at least 61,000 Bitcoin (worth roughly $7 billion), seized from a 2018 Chinese Ponzi scheme. This makes the U.K. the holder of the third-largest Bitcoin stash among countries that own the alpha cryptocurrency.
A woman was jailed for six years and eight months in 2024 for her role in laundering 150 BTC on behalf of a Chinese woman linked to the theft. Offloading the UK’s vast Bitcoin holdings could help with a £22 billion budget gap due to rising borrowing costs and slow growth. Chancellor of the Exchequer Rachel Reeves is seeking funding for welfare reversals and cost-of-living measures.
UK authorities typically keep 20% to 30% of seized assets, divided between law enforcement budgets and government funds. While the Crown Prosecution Service has requested permission from the High Court to retain the confiscated coins, with the proceeds then being allocated to the Treasury, victims have requested that the funds be returned to them.
 
“The UK’s bitcoin is still legally contested,” Susie Violet Ward, the CEO of the crypto lobby group Bitcoin Policy UK, said in a post on X on Sunday, blasting the Telegraph report as “sensationalism over substance.”
“Chinese authorities and victims are demanding it back. No sale can happen while that legal process is unresolved,” Ward explained.
Pressure To Stockpile Hoard Instead Of Selling
Last year, the German state of Saxony sold 50,000 Bitcoin for $2.9 billion as part of the plan to offload BTC seized from the defunct film piracy website Movie2K. In hindsight, the sale was strongly condemned by crypto pundits since the German government missed out on approximately $2.3 billion in profits by selling early before Bitcoin’s price explosion.
Observers have also cited the 1999 UK gold reserve sale under then-Chancellor Gordon Brown as a cautionary tale, where selling at market lows led to billions in missed profits.
Given that many crypto analysts anticipate Bitcoin to rocket higher this year, a potentially enormous sale could also end up being short-sighted in the long term.
Jordan Walker, the founder of the crypto advocacy group Bitcoin Collective, penned an open letter to the UK government urging it not to sell its Bitcoin in response to The Telegraph’s report.
“Selling these holdings to address a short-term budget deficit would send a concerning signal,” he said, adding it could have “long-term consequences for the UK’s economic positioning.”
That being said, Chancellor Reeves said in April that the UK Treasury is eager to work with the United States to better support innovation across the fast-growing crypto industry through clearer regulation.
“Through our Plan for Change, we are making Britain the best place in the world to innovate — and the safest place for consumers. Robust rules around crypto will boost investor confidence, support the growth of Fintech and protect people across the UK,” she said in a statement at the time.
It remains to be seen whether the UK will go the German route or copy the US’s national Bitcoin reserve plan.
Source: https://zycrypto.com/uk-is-looking-to-sell-gargantuan-7-billion-seized-bitcoin-stockpile-to-fix-budget-hole/