UK Insolvency Service Appoints First Crypto Specialist – What This Means for BTC Seizures

The UK Insolvency Service on Monday named its first crypto intelligence specialist, marking a major step in the government’s efforts to trace and recover digital assets such as Bitcoin from bankrupt individuals and criminal cases.

Andrew Small, a former economic crime investigator with the police, will lead the charge as crypto ownership becomes increasingly common in insolvency proceedings.

His appointment reflects a sharp rise in the number and value of crypto-related cases over the past five years. In 2024–25, the agency identified over £520,000 (about $660,000) worth of crypto assets across 59 insolvency cases, up from just £1,436 (around $1,820) in 14 cases in 2019–20.

Insolvencies with crypto as asset up 420% in 5 years
Over £500,000 crypto in insolvency cases last year
Ex-police investigator appointed to trace digital assets in criminal cases

Insolvency Service hires first crypto expert to help recover funds from bankruptcy cases

The move follows growing concerns about hidden or difficult-to-trace wealth in insolvency and enforcement work. With more than 7m UK adults now holding some form of cryptocurrency, according to the Financial Conduct Authority, digital assets are becoming a key part of the personal finance landscape. As a result, they are also showing up more frequently in bankruptcy and fraud investigations.

Small will operate within the Insolvency Service’s Investigation and Enforcement Services team, focusing primarily on criminal cases.

He is expected to provide frontline investigators with technical guidance on how digital assets such as Bitcoin, Ethereum and NFTs are stored, traded, and concealed.

“There has been a rapid rise in crypto ownership in the UK, and alongside that, we’ve seen a similar rise in cryptoasset ownership in bankruptcy cases,” said Small. “My role will help the agency by providing specialist knowledge about the types of cryptoassets available and the associated technology used to buy, sell and store them.”

The appointment is expected to have a significant impact on crypto seizures, particularly Bitcoin.

As the agency strengthens its ability to detect and recover digital assets, individuals and companies facing insolvency or criminal investigations will find it increasingly difficult to hide wealth in cryptocurrencies.

For those attempting to use crypto as a shield, the risks of detection and seizure are now markedly higher.

Officials say the new role is a critical part of returning more value to creditors. The agency’s expanding mandate includes tracing assets, as well as recovering them on behalf of creditors.

Neil Freebury, head of intelligence at the Insolvency Service, said the growing complexity of asset holdings made it essential to bring in experts. “Andrew brings a wealth of knowledge to this role,” he noted, adding that his background would strengthen the agency’s ability to deal with crypto-heavy cases.

The appointment signals a more aggressive and informed approach to digital asset enforcement in the UK, at a time when regulators and courts globally are grappling with the challenges of decentralized finance.

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