The United Kingdom holds a seized Bitcoin stash worth billions of dollars but could face legal action if it decides to use it.
For perspective, the UK was embroiled in what is seen as the most significant Bitcoin confiscation in history. Convicted scam scheme mastermind Zhimin Qian and his gang relinquished 61,000 BTC to the UK authorities, pleading guilty to fraud charges.
Notably, she and her gang ran a false investment scheme in China targeting elderly victims. They realized the funds and converted them to Bitcoin, but the authorities seized them in 2018.
Bitcoin Stash Now Worth Over $7.35 Billion
Meanwhile, CryptoQuant data shows that the authorities moved BTC tokens to the current address on July 27, 2021, at a worth of about $2.4 billion. Since then, the bags have remained idle, appreciating in value alongside the price of Bitcoin over the past four years.
The funds have increased by over 206% from 2021 to their current value of $7.35 billion as Bitcoin crossed $120,000 today. The notable uptick reflects the growth potential of Bitcoin, particularly for long-term holders.
The UK Contemplates Use Case for Growing Bitcoin Stash
Despite the UK seizing the funds, it still does not have a full claim to them. Notably, the UK Metropolitan Police confirmed that the perpetrators stole the substantial Bitcoin stash from 128,000 victims, who actively sought a way to recover their money.
Meanwhile, the UK Crown Prosecution Service is already pursuing a civil resolution to refund victims, with the hearing coming up 2026. However, the agency is torn apart on whether it will pay the victims the current worth of their coins or their value when they invested in 2018.
Nonetheless, the UK Treasury has already shown interest in retaining a considerable amount of the Bitcoin stash. Reports indicate that some officers are already considering the option of using Bitcoin to offset part of their budget deficit.
However, doing so would likely lead to a protracted legal battle for the asset, Chancellor of the Exchequer Rachel Reeves warned.
Meanwhile, CryptoQuant noted that tracking the funds remains a key focus for on-chain investigators, as their movement can ripple through the Bitcoin market. Remarkably, while the $7.35 billion stash is a minute part of Bitcoin’s over $2.4 trillion ecosystem, its dump could impact market sentiments in the short term.
An example of this was when the German government liquidated 50,000 BTC seized from piracy site Movie2K in January 2024. They sold the entire stash on the open market within a few weeks, starting in June 2024, when Bitcoin was trading at around $60,000.
While Bitcoin dropped considerably during the period, it has since increased to almost double its price then. The recovery saw the German government miss out on billions of dollars of profit by selling too early.
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