The UK’s Insolvency Service has appointed its first dedicated crypto intelligence specialist in response to a sharp rise in bankruptcy and criminal cases involving digital assets such as Bitcoin and Ethereum. The move comes as the agency reports a 420% increase in insolvency cases where crypto is identified as a recoverable asset.

Andrew Small, a former police investigator with a background in economic crime, will take on the new role within the agency’s Investigation and Enforcement Services team.

His work will focus on helping the Insolvency Service trace, assess, and recover crypto holdings from individuals and companies subject to insolvency proceedings.

Crypto Recoveries on the Rise

Figures from the Insolvency Service show the scale of the issue. In the 2024/25 financial year, the agency identified £523,580 in crypto assets across 59 insolvency cases. That compares to just £1,436 across 14 cases in 2019/20.

"There has been a rapid rise in crypto ownership in the UK, and alongside that, we’ve seen a similar rise in crypto asset ownership in bankruptcy cases," commented Small.

"The Insolvency Service has a duty to trace and recover money and assets from individuals or companies in insolvency cases, and we work to return as much money owed to creditors as possible."

The agency noted that the increased recovery of crypto assets will support its efforts to return more money to creditors. The appointment also reflects the wider adoption of digital assets in the UK. According to research by the Financial Conduct Authority, around 7 million UK adults, 12% of the population, held some form of crypto in 2024. That’s up from 3.2 million in 2021.

These holdings include mainstream cryptocurrencies like Bitcoin, Ethereum, and Litecoin, as well as digital tokens and non-fungible tokens (NFTs).

Criminal Cases Under Review

While Small will support all insolvency proceedings involving crypto, his role will focus heavily on criminal cases, where digital assets are often used to hide or move funds.

Expect ongoing updates as this story evolves.

Source: Finance Magnates