More than $300 million worth of cryptocurrency linked to cybercrime and fraud schemes has been frozen due to two separate initiatives involving law enforcement and private companies.

One initiative is the T3+ Global Collaborator Program launched by the T3 Financial Crime Unit (T3 FCU), a joint effort deployed almost a year ago by intelligence firm TRM Labs, TRON, and Tether, with Binance joining as the first official member – all major forces in the blockchain space.

According to intelligence firm TRM Labs, more than $250 million in criminal assets worldwide have been frozen since the program started in September 2024.

This includes a notable $6 million frozen in a joint action with Binance against perpetrators of ‘romance baiting’ scams.

“Since its inception in September 2024, T3 FCU has worked closely with law enforcement agencies worldwide to identify and disrupt criminal networks,” reads TRM Labs’ announcement.

“The unit has analyzed millions of transactions across five continents, monitoring over $3 billion USD in total volume,” the company states.

Since its launch, T3 FCU has assisted law enforcement agencies around the world into investigations on money laundering, investment fraud, extortion, terrorism financing, and other serious financial crimes.

The second initiative is a joint operation between the United States and Canada, supported by blockchain intelligence experts at Chainalysis.

The collaboration resulted in two operations – “Project Atlas,” led by the Ontario Provincial Police (OPP), and “Operation Avalanche” led by the British Columbia Securities Commission (BCSC), both entities relying on analytics from Chainalysis to trace scam proceeds.

According to the blockchain data platform, these investigations have uncovered in the past six months more than $74.3 million in losses linked to various types of fraud, leading to the freezing of large portions of these amounts.

“Driven from Canada but truly global in scope, Project Atlas identified more than 2,000 crypto wallet addresses linked to fraud victims across 14 countries, including Canada, the US, Australia, Germany, and the UK,” explains Chainalysis in a press release today.

“Working directly with Tether, we enabled the blacklisting of more than $50 million in USDT, preventing scammers from moving or liquidating these stolen assets,” the company states.

The two initiatives pair coordinated investigation sprints with structured global collaboration to detect and intervene at the blockchain level, significantly hindering cybercriminals from moving or spending scam proceeds.

The US Justice Department has closed its investigation into Kraken’s founder Jesse Powell, and returned dozens of laptops and mobile phones agents seized during an FBI raid two years ago, Fortune reported on July 22.

The federal case did not revolve around Kraken’s operations, but rather a bitter governance fight at the Verge Center for the Arts, a Sacramento nonprofit Powell founded in 2008.

News of the raid first surfaced in The New York Times, which reported that agents were probing allegations Powell had “hacked and cyber-stalked” the nonprofit.

Court filings since then depict something far less cinematic: a dispute over who controlled Slack and Google Workspace accounts after Powell was pushed off Verge’s board. 

Powell insisted he never cut off anyone’s access and argues instead that Verge insiders quietly created a new domain and parallel work accounts before moving to oust him. 

He is pursuing a civil lawsuit in state court, accusing former colleagues of defamation and wrongful removal.

Justice Department drops the case

Documents Powell filed this week include a so-called declination letter from prosecutors, confirming the Justice Department has walked away from the case.

His attorney said he requested the letter to counter the reputational damage caused by the raid and to reassure banks and regulators that Kraken’s leadership is not under federal scrutiny. 

Powell called the search “devastating” personally and professionally, maintaining that discovery in his lawsuit has already shown the accusations to be baseless.

The government’s exit does not resolve lingering questions. Neither the Justice Department nor the FBI would comment on how the Times obtained details of the investigation.

Powell’s latest filings also accuse two Verge board members, one of them attorney Phil Cunningham, of withholding key documents during discovery. 

Verge, meanwhile, continues to operate as a fixture of Sacramento’s arts scene, supported over the years by more than $1 million in donations and extensive tech assistance from Powell. 

Notably, Powell declined to say whether the returned devices held Bitcoin or other digital assets. When agents seized the hardware, Bitcoin (BTC) traded near $23,000. As of press time, BTC trades near $119,000.

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Britain’s Chancellor Rachel Reeves is considering a large-scale sale of seized Bitcoin in an effort to help address the “black hole” in the country’s public finances, according to the British newspaper The Telegraph. Estimates place the value of the seized crypto at over £5 billion ($6.7 billion). This move could provide a significant boost to UK government coffers as it seeks ways to balance the books amid rising borrowing costs and sluggish economic growth. But, at what cost?

Background: the source of the seized Bitcoins

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.

The seized Bitcoins were linked to the laundering activities of individuals such as Jian Wen, who was previously convicted for her role in facilitating money transfers connected to large-scale fraud.

Pressures Driving the Sale

The UK Treasury is under mounting pressure to plug a budget deficit that economists estimate at up to £20 billion. Stubborn inflation and high interest rates have increased the urgency to find new revenue sources.

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.

Some financial experts further caution against a rapid sell-off, referencing the infamous gold sales under then-Chancellor Gordon Brown, arguing that holding volatile assets could lead to either missed gains or sudden losses if prices dip.

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.

The opportunity cost of selling bitcoins

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

The U.S. Marshals Service auctioned significant amounts of Bitcoin seized from illicit activities, most notably the Silk Road case. Over 185,000 BTC were sold between 2014–2021 at prices ranging from $300 to $19,000 per coin. Had the U.S. government held those Bitcoins instead of selling, their value today would be over $21 billion.

Reeves has had a tenuous track record so far, with many calling her the worst chancellor of modern times. In an era of nationstates eyeing stacking Bitcoin to enhance sovereignty and hedge against inflation, and El Salvador’s bitcoin profits at well over $430 million, selling Britain’s seized bitcoins could be her biggest blunder yet.

Crypto Journalist

Amin Ayan

Crypto Journalist

Amin Ayan

About Author

Amin Ayan is a crypto journalist with over four years of experience in the industry. He has contributed to leading publications such as Cryptonews, Investing.com, 99Bitcoins, and 24/7 Wall St. He has…

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July 20, 2025

The UK government is preparing to offload billions of pounds worth of seized Bitcoin, as pressure mounts on Chancellor Rachel Reeves to plug a widening budget gap.

Working alongside police forces, the Home Office is designing a centralized framework to store and sell confiscated digital assets, according to a report from The Telegraph.

The plan, dubbed the “crypto storage and realisation framework,” could enable the sale of more than £5 billion ($6.5 billion) in Bitcoin, most of it recovered from historic criminal investigations.

A single 2018 raid alone netted 61,000 BTC, now valued at over £5.4 billion, after prices hit $123,000 last week.

Treasury Monitors Crypto Seizures as Law Enforcement Leads Sales

While law enforcement handles the seizures and sales, the Treasury is reportedly keeping a close eye on the operation.

Any proceeds not returned to fraud victims are typically split between the central government and law enforcement programs.

Experts believe the Treasury could receive billions from the sales, providing a rare financial boost as Reeves faces the dual challenge of rising debt costs and weak economic growth.

“There is oil under our feet in terms of digital assets,” said Aidan Larkin, CEO of seizure specialist Asset Reality.

“I do think digital assets will lead to a large windfall for government agencies and the public purse over the next five to ten years.”

The Home Office had previously invited bids for the contract to manage the crypto sale system, with terms suggesting up to £40 million in commissions for the chosen provider.

While initial bids failed to meet requirements, the project is expected to continue in a revised form.

The 2018 seizure of Bitcoin tied to Chinese fraudster Jian Wen is now under review, with victims requesting restitution.

If the Treasury were to keep half of that haul, approximately £2.6 billion, it would go a long way toward easing fiscal pressures.

Former Chancellor Norman Lamont urged Reeves to “spend it right away,” but others warn against rushing.

UK’s Bitcoin Sell-Off Sparks Fears of “Another Gold Blunder”

Comparisons have already been drawn to Gordon Brown’s infamous 1999 gold sale, when the UK sold 401 tonnes of gold at rock-bottom prices, a decision that cost the country tens of billions.

Meanwhile, political voices have weighed in. Reform UK leader Nigel Farage has called for the UK to establish a Bitcoin reserve, mirroring a move announced by Donald Trump in the U.S. Labour, however, rejected the idea, citing Bitcoin’s volatility.

Despite the risks, the size of the potential windfall makes it difficult to ignore.

“With the delays in court hearings that we’re getting now, you have to seize it and then maintain it for a long time,” said Cardiff University professor Michael Levi, an expert in criminal asset seizures.

The Russian government is attempting to seize a gold mining firm owned by a billionaire accused of breaking a rule that bans public officials from engaging in entrepreneurial activity.

The Russian Prosecutor General’s Office has filed a lawsuit to seize shares of billionaire Konstantin Strukov’s gold mining company, Yuzhuralzoloto, state-owned media Tass reports.

Strukov, who has been a deputy of the Legislative Assembly of the Chelyabinsk Region for 25 years, while also the deputy chairman of the Legislative Assembly, acquired the firm through a bankruptcy procedure. He was also the company’s CEO between 1997 and June 2001 before he became chairman of the board of directors.

The government’s lawsuit alleges that Strukov violated a ban on all public officials from engaging in business activity.

The rule also requires politicians to sell all their securities, shares, or stakes in companies before taking office.

According to Tass, Yuzhuralzoloto produces over 450,000 ounces of gold per year, which is $1.505 billion annually with a profit of 34 billion rubles – $432.43 million.

Prosecutors allege that Strukov frequently takes profits from the mine and transfers them abroad to Montenegro, Belgium, Switzerland, Luxembourg, Latvia, Estonia and Turkey where he and his family purchased houses, yachts and other luxury items.

The Russian government is requesting that 100% of Strukov and his daughter’s ownership of the company be transferred to the state.

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As the National Bank of Kazakhstan has confirmed its plans to establish a national cryptocurrency reserve, Kazakhstan is preparing to launch a state-run cryptocurrency reserve. The fund is probably created with seized digital assets and government-related mining operations.

This announcement came from government news agency Kazinform on June 25th, 2025. National Bank Chairman Timur Suleimenoff acknowledged the volatility and risks of the Internet associated with cryptography. However, he argued that by placing cryptographic sanctuaries under centralized facilities, it would ensure proper surveillance and reduce potential risks.

Destruction: Kazakhstan’s president renews his pledge to create a new “crypto city” that everyone will accept #bitcoin

Global mainstream adoption. It’s coming pic.twitter.com/fwbpblvit6

– Bitcoin Historian (@pete_rizzo_) June 25th, 2025

The concept of a national cryptocurrency sanctuary continues to gain global traction, especially after the US created cryptocurrency under Donald Trump.

Explore: 9+ Best High Risk, High Release Crypto Buy in July 2025

Kazakhstan’s cryptocurrency protected areas are processed by the national bank

Cazakhstan establishes
Strategic Bitcoin Reserve.

Global FOMO has begun!! pic.twitter.com/cq475h7zfl

– Ashcryptoreal (@ashcryptoreal) June 30, 2025

Importantly, Kazakhstan’s cryptocurrency protected areas are expected to be managed by a subsidiary of the National Bank, which specializes in alternative investments.

Additionally, the cryptographic protected areas could be funded through two major channels, according to official reports. The seized digital assets are the first source of information as authorities plan to use expropriated cryptography. The other is through government-related mining operations. Kazakhstan is known to have a growing crypto mining sector.

Explore: Top 20 Cryptos to Buy in July 2025

President Kassym-Jomart Tokayev is driving urgent expansion of crypto infrastructure

President Kazakhstan Kassym-Jomart Tokayev called for an urgent expansion of the country’s crypto infrastructure during a government meeting. “The order of widespread use of cryptocurrencies and other digital assets has emerged in the financial sector,” President Tokayev said on January 28, 2025.

“The development of artificial intelligence is becoming a fundamental factor, and competition among key technical capabilities is intensifying in this area,” he added. “In these conditions, a clear strategy of action aimed at overcoming the serious challenges of the new era is necessary.”

Discovery: Next 1000x Ciphers: 10+ Ciphers tokens that could hit 1000X in 2025

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