U.K. authorities have frozen approximately $7.7 million worth of illicit cryptocurrencies since April 2024, as part of a growing effort to combat criminal use of digital assets.
Cryptocurrencies have increasingly become the preferred method for money laundering and funding terrorism, prompting the U.K. government to strengthen its regulations.
The largest frozen crypto wallet was held on Coinbase, containing $1.94 million (£1.5 million) in tokens. This freeze order was issued on March 18 by the Newcastle Upon Tyne Magistrates’ Court, at the request of His Majesty’s Revenue and Customs (HMRC), suggesting that the case might be related to tax evasion. The identity of the wallet’s owner remains unknown.
New Powers for Law Enforcement
In response to the rise of cryptocurrency-related crimes, the U.K. amended its laws last year, granting the National Crime Agency (NCA) and local police enhanced powers to freeze, seize, and destroy crypto assets linked to criminal activities. Under the new regulations, police can freeze crypto wallets for up to three years, and can seize funds if a court is convinced they originated from illicit sources or were destined for criminal use.
This legislation also enables law enforcement to target crypto wallets suspected of being tied to criminal organizations without the need for arrests, making it easier to disrupt illegal financial networks. Additionally, authorities can destroy seized cryptocurrencies, especially privacy coins often used to mask illicit activities.
More Frozen Cryptocurrencies
Recently, The U.S. Department of Justice (DOJ) has successfully seized approximately $201,400 in cryptocurrency, which is alleged to have been used for funding the activities of the terrorist organization Hamas.
Source
Kosta Gushterov
Reporter at Coindoo
Kosta has been a part of the team since 2021 and has solidified his position with a thirst for knowledge, incredible dedication to his work and a “detective-like” mindset. He not only covers a wide range of trending topics, he also creates reviews, PR articles and educational content. His work has also been referenced by other news outlets.
Source: https://coindoo.com/u-k-freezes-7-7-million-in-illicit-crypto-assets-to-combat-crime/