UK Appoints First Crypto Specialist to Recover Digital Assets in Bankruptcy Cases

The UK Insolvency Service has taken a decisive step toward reclaiming cryptocurrencies tied to bankruptcy and criminal cases by appointing Andrew Small, a former police investigator, as its first dedicated crypto intelligence specialist. The move comes as crypto-related insolvencies surged 420% over five years, with 59 cases recorded in 2024/25 compared to just 14 in 2019/20.

Recoverable crypto assets in insolvency proceedings have exploded in value—from a mere £1K in 2019/20 to over £520K (~$710K) this fiscal year. Small’s role will focus on tracing and recovering digital holdings from insolvent entities, leveraging his investigative expertise in a market where 12% of UK adults now hold crypto, up from 4.4% in 2021.

The Financial Conduct Authority’s 2024 study underscores this tectonic shift: seven million Britons own digital assets, reflecting both mainstream adoption and the growing need for regulatory oversight. "Crypto is very much a recoverable asset," Small emphasized, signaling a new frontier for asset recovery in bankruptcy proceedings.