UK Appoints Crypto Crime Expert as Insolvency Cases Surge 420%

Highlights:

• The UK has hired a crypto expert after a 420% jump in insolvency cases.
• Andrew Small will recover lost digital assets like Bitcoin, memecoins, and NFTs.
• Crypto users in the UK have tripled since 2021, nearing 7 million adults.

As crypto-related collapses increase, the UK Insolvency Service has made a significant move by assigning a specialist to deal with such matters. Andrew Small, a former police investigator with expertise in economic crimes and a strong understanding of cryptocurrencies, has been appointed to lead the effort. He will focus on tracking down and recovering digital assets that remain unaccounted for during insolvency processes, according to the agency’s statement on June 9.

Crypto Bankruptcies Soar 420% as UK Expert Calls Assets Recoverable

Andrew Small noted that as crypto adoption continues to grow across the country, there’s been a matching increase in crypto holdings turning up in bankruptcy cases. He emphasized that cryptocurrencies are “definitely recoverable assets” in such proceedings. The UK has witnessed a dramatic surge in crypto-linked insolvency cases, jumping by 420% in the past five years. During the same period, the total value of crypto assets uncovered in these cases has soared 364-fold, reaching £523,580 (around $709,500).

📈 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

— Insolvency Service (@insolvencygovuk) June 9, 2025

Small will serve in the Insolvency Service’s Investigation and Enforcement Services team. He will investigate cases involving criminal activity where cryptocurrency is among the assets. His job is to help find all missing assets, both digital and non-digital so that creditors can get back as much money as possible. Small said he would help by sharing his knowledge about different types of cryptocurrencies and how people buy, sell, and store them. The Insolvency Service shared that this could include well-known coins like Bitcoin and Ether, memecoins like Dogecoin, and even digital art in the form of NFTs.

Neil Freebury, head of intelligence at the Insolvency Service, said crypto assets are getting harder to deal with. He said Andrew has strong skills and will help the agency handle crypto cases better. This step shows the UK is getting more serious and prepared to deal with digital assets, as many countries face problems with decentralized finance.

Freebury stated:

“As crypto becomes more mainstream, it’s crucial our teams have the expertise to manage it effectively. Andrew’s appointment brings valuable experience and enhances our ability to deal with the complexities of cryptoasset ownership in insolvency cases.”

UK Sees Surge in Cryptocurrencies Adoption

The Financial Conduct Authority reports a sharp rise in crypto ownership in the UK, increasing from 4.4% of adults in 2021 to 12% by 2024. That means around 7 million people now hold digital assets. These include popular cryptocurrencies such as Ethereum, Dogecoin, and Litecoin, along with NFTs and various digital tokens.

Efforts to recover crypto in bankruptcy cases are growing, reflecting the UK’s wider push to strengthen and enforce crypto regulations. Starting January 1, 2026, UK crypto firms must track and report data on all customer trades and transfers. The UK Revenue and Customs Department says this step supports the government’s wider plan to improve crypto tax reporting.