U.K. Appoints First Crypto Specialist to Boost Asset Recovery Efforts

The U.K.'s Insolvency Service has appointed its first-ever crypto intelligence specialist as part of a broader effort to enhance digital asset recovery in bankruptcy and fraud cases. Former police investigator Andrew Small will lead the role, focusing on tracing cryptocurrencies and supporting criminal investigations involving digital assets.

The move reflects a growing trend in the insolvency sector, with the number of cases involving crypto recoveries increasing by 420% over the past five years, according to the agency. The estimated value of crypto assets identified for recovery has surged 364 times, reaching approximately £520,000 ($700,000).

Small stated that his position will support the Insolvency Service by bringing expert knowledge of cryptoassets and the underlying technologies used for buying, selling, and storage. He emphasized that cryptocurrencies are now "very much a recoverable asset," reinforcing the government's commitment to adapting its recovery methods to the evolving digital financial landscape.

This appointment aligns with the U.K.’s broader efforts to regulate and integrate cryptocurrencies within its financial system. The Financial Conduct Authority (FCA) recently reported that the number of U.K. residents holding crypto grew to 7 million in 2024, up from 2.2 million in 2021. In response to this rapid adoption, the government has been actively developing a regulatory framework, including draft legislation and public consultations to establish a comprehensive crypto regime.

As cryptocurrencies become increasingly embedded in both legal and financial systems, the U.K. is moving swiftly to ensure it has the tools, talent, and policies needed to safeguard the interests of creditors and support lawful asset recovery in the digital age.