The UK government is planning to sell a massive stash of bitcoin worth over £5 billion ($7.1 billion). It’s part of a wider effort to plug a growing £20 billion budget hole.
The plan, first reported by The Telegraph, has been confirmed by several sources and involves the Home Office, Chancellor of the Exchequer Rachel Reeves, and UK law enforcement.
Much of the seized bitcoin dates back to a 2018 raid, when authorities took 61,000 BTC from a Chinese Ponzi scheme. That’s now worth over £5.4 billion after bitcoin prices hit record highs.
The proposal to sell seized bitcoin was apparently first suggested in an exclusive DailyMail article in January 2025.
The woman behind the laundering case, Jian Wen, was convicted in 2024 and sentenced to over six years in prison. But the victims of the fraud are asking for the bitcoin to be returned, adding legal complexity to the matter.
Related: 61,000 BTC Seized by UK Police | Victims Seek Restitution
“The UK’s Bitcoin is still legally contested,” warned Susie Violet Ward, CEO of Bitcoin Policy UK, accusing The Telegraph of what she called “lazy” journalism.
“Chinese authorities and victims are demanding it back. No sale can happen while that legal process is unresolved.”
The government is reportedly working on a “crypto storage and realisation framework”, a new system to manage and sell seized digital assets. A previous contract worth £40 million didn’t attract any bidders, but a revised plan is coming soon.
“There is oil under our feet in terms of digital assets,” said Aidan Larkin, CEO of seizure management firm Asset Reality. “I do think digital assets will lead to a large windfall for government agencies and the public purse over the next five to ten years.”
The Treasury isn’t directly involved in the seizures, but is keeping an eye on the revenue. Under current rules, any funds not returned to victims are split between the central government and police departments.
This comes as Chancellor Rachel Reeves faces growing financial pressure. A recent welfare policy U-turn has left the government with a £5 billion hole, with fears that it may have to raise taxes to plug the gap.
The development has sparked nationwide financial debate, with many warning against it.
“Selling these holdings to address a short-term budget deficit would send a concerning signal,” said Jordan Walker of Bitcoin Collective in an open letter. “(It could have) long-term consequences for the UK’s economic positioning.”
Some have compared the potential sale to former Chancellor Gordon Brown’s 1999 decision to sell the UK’s gold reserves at record low prices — a move that cost the country tens of billions, as gold later skyrocketed in value.
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