New Era for Crypto Investigations: UK Appoints First-Ever Specialist to Tackle Rising Insolvency Cases

The United Kingdom is implementing strategies to enhance the investigative frameworks around crimes associated with cryptocurrencies. This week, the UK government appointed Andrew Small as the inaugural crypto expert within the Insolvency Service, tasked with recovering and tracking assets tied to bankrupt individuals or dissolved enterprises. Previously, Andrew Small served as a police investigator and, during his new appointment, emphasized the increasing frequency of crypto-related bankruptcy situations that require urgent intervention.

Over the past five years, the UK government reported a staggering 420 percent surge in insolvency cases where cryptocurrencies are identified as recoverable assets. From 2019 to 2020, there were 14 such insolvency cases, while the numbers skyrocketed to 59 between 2024 and 2025.

In his remarks, Small asserted that crypto assets are «definitely recoverable» and that he will support the Insolvency Service in leveraging cryptocurrency technologies to facilitate necessary investigations.

«The Insolvency Service is obligated to trace and reclaim funds and assets from individuals or companies involved in insolvency proceedings, working diligently to return as much debt owed to creditors as feasible,» he outlined.

Currently, the cryptocurrency landscape in the UK is subject to partial regulation. While there are regulations governing crypto advertisements, the government has also recently revised certain business reporting requirements for crypto exchanges. There are plans to establish a more comprehensive regulatory framework for cryptocurrencies by the year 2026.

As regulatory measures gradually come into play, these digital assets have «gained significant traction» in the UK. In 2024, the Financial Conduct Authority (FCA) disclosed that around seven million adults in the UK—representing 12 percent of the population—possess crypto assets. In 2021, the figure was recorded at 3.2 million adults with crypto holdings. With growing domestic interest in cryptocurrencies, the UK government intends to enhance scrutiny over crypto transactions to identify illegal financial activities.

«The popularity of crypto is on the rise. Andrew’s extensive experience will be invaluable in this position, particularly his previous role as an economic crime investigator with the police, which will aid our investigators in cases involving crypto asset ownership,» remarked Neil Freebury, the head of intelligence at the Insolvency Service, in response to Small’s new role.

As the nation moves closer to finalizing its cryptocurrency regulations, the Bank of England (BoE) is also intensifying its oversight of crypto-related activities. Last December, the BoE required UK firms to report their respective exposures to cryptocurrencies.

In the interim, companies such as Coinbase, BitPanda, Mastercard, and Kraken have broadened their crypto operations in the US.