UK Authorities Freeze Nearly $7.7 Million in Illicit Crypto Assets Within a Year

British law enforcement has begun leveraging expanded legal powers to combat crypto-related crime, freezing approximately $7.7 million (around £6 million) worth of digital assets over the past year. The figure, reported in a recent investigation by MailOnline, reflects increased governmental focus on the intersection of cryptocurrency and criminal activity.

These actions follow amendments to UK legislation in 2024 that authorized agencies such as the National Crime Agency (NCA) and local police forces to freeze, confiscate, and, if necessary, destroy crypto assets believed to be connected to illicit conduct. The powers can be exercised even without making an arrest or completing a criminal prosecution.

The largest single freeze occurred in March 2025, when a court in Newcastle Upon Tyne approved the freezing of a crypto wallet hosted on Coinbase containing approximately $1.94 million. The application came from His Majestys Revenue and Customs (HMRC), hinting at possible tax evasion.

Legal experts note that these figures are relatively modest when compared to the global scale of cryptocurrency transactions. However, they say the numbers reflect only the beginning of more systematic enforcement in the UK.

Siobhain Egan, a defense lawyer specializing in asset freezing cases, stated that the UK government has ramped up resources dedicated to tackling money laundering and terrorism financing via crypto, and expects a surge in future freeze orders. She emphasized that authorities are now able to preemptively block access to wallets without prior warning, helping preserve evidence and prevent fund dispersal.

Still, enforcement faces limitations. Most effective freeze actions occur on centralized platforms such as Coinbase or Binance, where authorities can cooperate with the service provider. Crypto stored in private wallets secured by user-held keys remains beyond immediate reach of law enforcement unless other investigative breakthroughs occur.

Additionally, the lack of deep technical understanding of blockchain among police and financial investigators continues to hinder investigative speed and efficiency. Despite these challenges, UK officials maintain that targeting illicit crypto holdings is now a permanent component of their financial crime strategy.