In a significant move to modernize asset recovery in digital finance, the UK Insolvency Service has appointed Andrew Small, a former police investigator specializing in economic crime, as its first dedicated crypto intelligence specialist. His mission: to trace and recover cryptocurrency tied to bankruptcies and criminal cases.
Announced on June 9, the appointment highlights the country’s growing need to address complex crypto-related insolvencies. Over the past five years, such cases have surged by 420%, with the total value of digital assets discovered in insolvency estates rising from just over £1,400 to more than £523,000.
Small emphasized that crypto assets, despite their digital nature and perceived anonymity, remain within the reach of recovery.
“We’ve seen a sharp increase in crypto ownership, including among bankrupt individuals. But digital assets are very much recoverable,” he stated.
His role includes identifying undeclared crypto holdings, crafting legal strategies for recovery, and coordinating across agencies in cases involving blockchain-based funds. The move underscores the UK’s commitment to bringing crypto under legal frameworks as enforcement catches up with decentralized finance.
Recovery Efforts Extend to NFTs and Memecoins
The UK Insolvency Service is preparing for a broad crypto recovery push—extending beyond Bitcoin and Ethereum to include memecoins and NFTs. With Small leading the charge, the recovery mandate now covers a wider spectrum of digital assets often ignored in past cases.
A veteran of economic crime investigations, Small will bring technical depth to the Insolvency Service, helping forensic teams identify hidden wallets, trace suspicious activity, and unlock crypto value for creditors.
Officials say this expanded focus reflects the evolving face of financial crime. Assets like Dogecoin or digital collectibles may seem fringe, but they can hold substantial value in fraud and bankruptcy proceedings.
Neil Freebury, head of intelligence at the Insolvency Service, noted that Small’s appointment will “strengthen collaboration and investigative outcomes” in complex crypto-related cases.
The message is clear: as digital assets become part of everyday finance, no token is too obscure to escape the scope of recovery.
Crypto Ownership Surges as UK Tightens Oversight
Crypto adoption in the UK is accelerating—and so is the government’s regulatory push. A recent Financial Conduct Authority survey revealed that 12% of UK adults owned cryptocurrency in 2024—triple the rate recorded in 2021. With average holdings valued at over £1,800 ($2,490), crypto has entered the financial mainstream.
In response, the government is rolling out tighter rules. Beginning January 1, 2026, UK-based crypto companies will be required to report detailed information for every transaction. This includes the asset, transaction amount, full legal name, residential address, and tax ID of the customer involved.
These measures fall under the UK’s adoption of the OECD’s Cryptoasset Reporting Framework, a global initiative to plug tax loopholes and add transparency to cross-border digital activity.
Officials say this shift is crucial for catching up with the expanding crypto economy, especially as fraud, bankruptcy, and tax evasion involving digital assets continue to rise.
Quick Facts
- The UK Insolvency Service appointed Andrew Small as crypto specialist.
- Crypto-related insolvency cases rose 420% in five years.
- Recovery now targets NFTs, Dogecoin, and other non-traditional tokens.
- 12% of UK adults owned crypto in 2024, triple 2021 levels.
- Crypto firms must report all transactions starting January 2026.
