In a groundbreaking move that signals the United Kingdom’s evolving approach to digital asset enforcement, the Insolvency Service has appointed its first-ever cryptocurrency expert to aid in fund recovery during criminal and bankruptcy proceedings. Andrew Small, a former economic crime investigator with the police, has taken on the role of tracing and recovering crypto assets such as Bitcoin and NFTs, increasingly tied to insolvency and criminal cases.
This strategic appointment reflects a pressing need within the UK’s financial enforcement landscape, as crypto-related insolvency cases have surged by 420% over the past five years. The explosion in digital asset ownership and usage has prompted authorities to expand their toolkit for tracing hidden or obscure crypto holdings and returning lost funds to creditors.
A Specialist for a Rising Crisis
Andrew Small brings deep investigative experience to the role, having previously worked on economic crime cases involving sophisticated financial tactics. His new assignment involves guiding intelligence teams and bankruptcy officials within the Insolvency Service on the often opaque world of digital finance.
“In the United Kingdom, there has been a rapid increase in the ownership of cryptocurrencies and, at the same time, a similar increase in the ownership of crypto in cases of bankruptcy,” Small said in a statement. “The Insolvency Service has the duty to trace and recover money and assets from individuals or companies in cases of insolvency, and we work to return as much money as possible to creditors.”
He added, “Cryptocurrency is a recoverable asset, and my role will assist the agency by providing specialist knowledge on the types of assets available and the related technology used to buy, sell, and store them.”
Small’s appointment comes as the Insolvency Service faces mounting challenges from a fast-growing financial sector that often operates beyond traditional regulatory reach. His task will be to help demystify digital assets and ensure that bankruptcy cases involving cryptocurrencies are handled with the same precision as any other asset recovery.
Alarming Growth in Crypto-Related Bankruptcies
The numbers speak volumes about the urgency of Small’s role. In the 2024–2025 fiscal period alone, crypto insolvency cases in the UK reached more than £500,000, a staggering 364-fold increase compared to 2019–2020. As cryptocurrencies gain traction among the general public, their appearance in bankruptcy proceedings has followed suit, often complicating the asset recovery process due to the decentralised and sometimes anonymous nature of digital tokens.
The Financial Conduct Authority (FCA) reports that 12% of the UK population now holds cryptocurrency, a significant rise from just 4.4% in 2021. This increase is not merely speculative—digital assets are becoming deeply embedded in both personal and commercial financial ecosystems, making them more likely to surface in legal proceedings tied to insolvency or fraud.
The HODL Mentality: British Crypto Behaviour
Beyond enforcement, recent data offers insight into how UK residents engage with cryptocurrencies. According to the CoinCorner 2024 report, more than half of crypto users in the UK have never sold their Bitcoin, adhering to a long-term holding strategy often referred to in the crypto world as “HODL.” The report, based on a survey of 2,000 users, found that the average Bitcoin purchase was around £412, while the average sale exceeded £5,500—more than ten times higher—suggesting that British users are highly selective and strategic when it comes to selling their holdings.
This tendency to hold rather than trade actively underscores the increasing perception of cryptocurrencies as long-term assets, complicating recovery efforts in cases of bankruptcy. It also highlights why specialist knowledge is essential for tracking down and evaluating crypto assets in legal and financial disputes.
A Necessary Step for a Digital Future
The appointment of Andrew Small is a clear signal that the UK is stepping up its response to the challenges posed by the digital economy. With crypto assets becoming an increasingly common feature in both legal and criminal financial cases, having an expert in the field is no longer a luxury—it’s a necessity.
As Small puts his skills to work, the Insolvency Service is betting that greater expertise and insight into the crypto landscape will translate into more effective fund recovery, stronger enforcement, and ultimately, greater trust in the financial system as it continues to evolve into the digital age.
