Michaela
The UK’s Insolvency Service has brought on its first-ever crypto intelligence officer, aiming to track and recover digital assets tied to bankruptcies and financial crimes. The move comes as more individuals facing insolvency or prosecution are found holding cryptocurrencies, prompting the agency to boost its digital asset recovery capabilities.
The government agency appointed former police investigator Andrew Small as its first crypto intelligence specialist, according to a press release. In this newly created role, Small will support the agency’s efforts to trace digital assets in criminal investigations and offer expert insight into the cryptocurrency market.
The Insolvency Service will be tasked with identifying and recovering funds and assets tied to individuals declared bankrupt or companies undergoing liquidation as part of ongoing insolvency proceedings.
Over the past five years, there has been a sharp increase in insolvency cases involving crypto, with the number of cases jumping from 14 in 2019/20 to 59 in 2024/25—a 420% surge. During the same period, the estimated value of cryptoassets linked to these cases skyrocketed from just over £1,400 to more than £520,000, marking a staggering 364-fold increase.
“There has been a rapid rise in crypto ownership in the UK, and alongside that, we’ve seen a similar rise in cryptoasset ownership in bankruptcy cases,” Small stated.
The newly appointed crypto intelligence specialist emphasized that the Insolvency Service is committed to identifying and recovering funds and assets from individuals or businesses undergoing insolvency. The goal, he noted, is to maximize returns to creditors wherever possible.
“Crypto is very much a recoverable asset, and my role will help the agency by providing specialist knowledge about the types of cryptoassets available and the associated technology used to buy, sell and store them,” Small added.
Digital assets such as Bitcoin, Ethereum, Litecoin, Dogecoin and non-fungible tokens (NFTs) have seen rapid growth in popularity across the UK in recent years. Research published by the Financial Conduct Authority in 2024 found that around seven million UK adults now hold some form of cryptocurrency, up from 4.4 percent of the population in 2021.
The newly created cryptoasset intelligence position has been placed within the Insolvency Service’s Investigation and Enforcement Services team. In this role, Small will concentrate on identifying and tracking cryptoasset ownership tied to criminal investigations.
Neil Freebury, Head of Intelligence at the Insolvency Service, cited the rapid growth of cryptocurrency and noted a fourfold increase in insolvency cases involving cryptoasset ownership over the past five years.
“Andrew brings a wealth of knowledge to this role, along with his previous experience as an economic crime investigator within the police, and his appointment will help our investigators dealing with cases where cryptoasset ownership is a factor,” Freebury stated.
As digital assets become an increasingly common element in financial portfolios, the Insolvency Service’s enhanced focus on crypto intelligence marks a significant step toward modernizing asset recovery efforts. This development reflects a broader commitment to adapting traditional financial oversight to the evolving landscape of digital finance.
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Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
