The UK government faces significant criticism for its plan to sell nearly £5 billion ($6.7 billion) worth of Bitcoin seized from criminal activity, a move intended to address budget deficits approaching £20 billion. Treasury and Home Office officials are advancing the liquidation of the confiscated assets.
Cryptocurrency advocates and opposition figures have strongly condemned the proposed sale timing. Reform Party member Zia Yusuf likened it to the UK’s past error of selling gold reserves at market lows. Decentra Suze, co-founder of Bitcoin Policy UK, echoed warnings against selling at a potential bottom, citing former Chancellor Gordon Brown’s gold sale as a costly precedent.
The UK currently holds 61,245 BTC, valued at approximately $7.2 billion, with the majority seized during a major operation in 2024 when the forfeited holdings were worth an estimated £1.4 billion.
This potential liquidation occurs as other sovereign entities, notably El Salvador and Switzerland, significantly expand their strategic Bitcoin reserves, presenting a contrasting approach to national crypto asset strategy and prompting debate over missed long-term financial opportunities.