UK Authorities Freeze Millions in Illicit Crypto Assets
Since April 2024, UK authorities have frozen approximately $7.7 million (£6 million) worth of illicit crypto assets, according to an investigation by MailOnline.
Combatting Criminal Use of Cryptocurrencies
Cryptocurrencies have become the asset of choice for criminals looking to launder illicit money and fund terrorism. To address this growing concern, the UK introduced new rules last year to empower the National Crime Agency (NCA) and police to freeze, seize, and destroy cryptocurrencies associated with criminal activities.
- Authorities can freeze crypto wallets for up to three years.
- Assets can be seized if the court determines they are linked to illicit sources or criminal purposes.
- Law enforcement can seize wallets suspected of ties to criminal organizations without an arrest.
Biggest Frozen Wallet Traced to Coinbase
The largest freeze order was issued against a wallet hosted on Coinbase, containing $1.94 million (£1.5 million) worth of tokens. The Newcastle Upon Tyne Magistrates’ Court issued the order on March 18, potentially related to tax evasion.
Anticipated Increase in Freeze Orders
While the $7.7 million frozen is relatively small compared to global crypto transactions, more freeze orders are expected. Legal experts suggest that UK authorities are ramping up efforts to combat money laundering and terrorism financing using cryptocurrencies.
Enhancing the Investigative Process
Authorities can now request to freeze crypto wallets without the knowledge of alleged criminals, disrupting their ability to transfer funds. This preemptive action aims to fill gaps in the investigative process and strengthen cases against suspects.
Challenges and Future Outlook
Challenges persist in freezing crypto assets held by foreign nationals and those stored in private wallets. Limited understanding of crypto and blockchain technology among regulators and investigators also poses obstacles. However, efforts to address these challenges are underway to tackle the illicit use of cryptocurrencies more effectively.
