Former police investigator Andrew Small will help track digital assets in criminal cases and provide the agency with detailed knowledge of the crypto market. 

This means that liquidated companies and individuals that go bust hoping they can hide their cryptoassets, including the likes of Bitcoin, Litecoin and Ethereum, as well as online tokens and non-fungible tokens  (NFTs), which offer digital ownership of online artworks, will be less able to evade the Insolvency Service investigators.  

In the past five years, the number of insolvency cases involving crypto as a recoverable asset has risen by 420%, with 59 cases in 2024/25 compared to 14 in 2019/20.  

The estimated value of cryptoassets identified in insolvency cases has risen by 364% from just over £1,400 in 2019/20 to more than £520,000 in 2024/25.  

Andrew Small, crypto intelligence specialist at the Insolvency Service, said: ‘There has been a rapid rise in crypto ownership in the UK, and alongside that, we’ve seen a similar rise in cryptoasset ownership in bankruptcy cases. 

‘The Insolvency Service has a duty to trace and recover money and assets from individuals or companies in insolvency cases, and we work to return as much money owed to creditors as possible. 

‘Crypto is very much a recoverable asset, and my role will help the agency by providing specialist knowledge about the types of cryptoassets available and the associated technology used to buy, sell and store them.’

The new cryptoasset intelligence role is based within the Insolvency Service’s investigation and enforcement services team so Small will primarily focus on cryptoasset ownership in criminal cases.  

Neil Freebury, head of intelligence at the Insolvency Service, said: ‘Crypto is growing in popularity, and we’ve seen the number of insolvency cases involving cryptoasset ownership rise four-fold in the past five years.  

‘Andrew brings a wealth of knowledge to this role, along with his previous experience as an economic crime investigator within the police, and his appointment will help our investigators dealing with cases where cryptoasset ownership is a factor.’

With crypto a borderless, anonymous entity, there will be challenges ahead.

Scott Gallacher, director at wealth management firm Rowley Turton said: ‘One of the supposed advantages of crypto is that it is outside the traditional banking world, so this appointment seems a wise move, albeit somewhat belated.

‘Hopefully, it will ensure creditors receive what they are owed and stop people from avoiding their liabilities by trying to hide money in crypto.’