Insolvency Service Appoints First Dedicated Crypto Specialist to Recover Digital Assets
Published: June 9, 2025
Source: The Insolvency Service
In a significant move to tackle the burgeoning realm of digital cryptocurrencies, the Insolvency Service has appointed its first dedicated crypto intelligence specialist. This new position aims to enhance the agency’s capacity to recover online assets including popular cryptocurrencies such as Bitcoin, Ethereum, and others from individuals and companies undergoing insolvency proceedings.
Growing Trend of Crypto Assets in Insolvency Cases
The need for this specialist role has emerged from a staggering increase in the number of insolvency cases involving cryptocurrencies. Over the past five years, the incidence of identified cryptos as assets in bankruptcy proceedings has skyrocketed by 420%. In the fiscal year 2024/25, there were 59 cases involving cryptocurrencies, compared to just 14 cases in 2019/20. Additionally, the financial importance of these digital assets has also surged phenomenally. Last year, the Insolvency Service recovered over £500,000 in cryptocurrencies, a figure that stands in stark contrast to the mere £1,436 retrieved in 2019/20. This represents a 364-fold increase in the value of cryptoassets identified in insolvency cases.
Appointment of Andrew Small as Crypto Intelligence Specialist
Andrew Small, a former police investigator with extensive experience in economic crime, has been appointed to this newly created role. His responsibilities include tracking down digital assets involved in both bankruptcy and criminal cases, leveraging his specialized knowledge of the cryptocurrency market.
Commenting on the appointment, Small stated, “There has been a rapid rise in crypto ownership in the UK. Alongside this growth, we have seen a similar increase in crypto asset ownership in bankruptcy cases. The Insolvency Service has a duty to trace and recover assets to return as much money owed to creditors as possible.”
The Crypto Landscape in the UK
Research from the Financial Conduct Authority (FCA) indicates that as of 2024, approximately 7 million adults in the UK, or 12% of the population, held some form of cryptocurrency. This is a significant increase from 3.2 million adults (4.4% of the population) in 2021. The categories of crypto ownership include various coins like Bitcoin, Litecoin, and DOGE, as well as tokens and non-fungible tokens (NFTs), which represent digital ownership of artworks and collectibles.
Neil Freebury, head of intelligence at the Insolvency Service, stated, “The appointment of Andrew is a proactive step as we continue to see the popularity of crypto rising. His background in economic crime investigations will greatly aid our efforts in cases where crypto asset ownership is relevant.”
The Role of the Insolvency Service
The Insolvency Service has a fundamental responsibility to trace and recover assets from bankrupt individuals or companies. Official Receivers, appointed by the court, fulfill a legal duty to recover as much money as possible for creditors. The creation of the crypto intelligence role underscores the government’s commitment to adapting to the changing landscape of finance, anticipating future needs as digital assets become more integrated into day-to-day financial transactions.
For further information, the latest insolvency statistics can be accessed on the GOV.UK website.
Conclusion
The Insolvency Service’s decision to appoint a dedicated crypto specialist reflects the increasing integration of cryptocurrencies in the UK economy and underscores the necessity for regulatory agencies to adapt to this fast-evolving sector. As digital assets continue to gain traction, the efforts to recover and manage these assets will be crucial in ensuring the responsibilities to creditors are met efficiently.
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