The UK police hold a cache of at least 61,000 Bitcoins, much of it confiscated in 2018 as part of an investigation into a Chinese Ponzi scheme. The value of these holdings has surged, swelling from roughly £300 million at the time of seizure to well over £5 billion today, owing to the sharp rise in Bitcoin prices.
This potential Bitcoin windfall is seen as an opportunity to avoid further tax rises or cuts in public spending, both highly sensitive political topics.
There are ongoing legal questions about returning funds to victims of the Ponzi scheme, however, especially those overseas or whose identities cannot be easily verified.
While some politicians have suggested the UK consider holding a national Bitcoin reserve, the government strategy currently remains focused on asset liquidations rather than speculative holding.
Britain is not alone in viewing Bitcoin sales as a budgetary resource. Several countries have liquidated their government or law enforcement-seized crypto holdings to balance the books or recoup funds from criminal cases to the detriment
