- UK police seized 20.21 BTC in their largest crypto forfeiture since April 2024.
- Investigators traced darknet-linked Bitcoin activity from 2016–2019.
- The case shows crypto remains traceable for years under new UK enforcement powers.
Avon and Somerset Police have carried out their largest cryptocurrency seizure since new crypto-wallet freezing powers came into force in April 2024, forfeiting 20.21 Bitcoin in a case linked to years-old darknet activity. The case highlights how blockchain transactions can remain traceable long after the original crimes.
The force said investigators recovered assets worth £1,032,487.86, including Bitcoin, other cryptocurrencies, and bank funds, by tracing holdings tied to darknet marketplaces active between 2016 and 2019. The subject of the investigation, who has since died, had previously been convicted of money laundering offenses.
UK Crypto Seizure Followed Years-Old Blockchain Trails
Police said specialist financial investigators, supported by the force’s Cyber Team, identified and traced the crypto assets to darknet marketplaces that law enforcement later shut down. Those sites had facilitated crimes including drug supply and people trafficking.
The case clarifies the distinction between pseudonymity and true anonymity. UK government material describes crypto assets as “pseudo-anonymous,” while official research explains that Bitcoin wallets are not directly tied to real-world identifiers on the blockchain.
That difference matters. Bitcoin records transfers between wallet addresses on a public ledger, creating an auditable transaction trail. However, an address does not by itself reveal the name of the person controlling it.
Investigators, therefore, still need documentation that attributes a wallet or public key to a person before a blockchain trail can establish who controlled the assets. FCA material similarly notes that pseudonymous technology does not make an owner’s identity readily identifiable.
Blockchain Records Became Evidence in £1M Case
Avon and Somerset Police said investigators used cryptocurrency tracing and financial investigation techniques to connect the holdings with activity dating back several years. A court later accepted that the cryptocurrency and associated funds represented proceeds of unlawful conduct, allowing their forfeiture under the Proceeds of Crime Act (POCA).
The case also aligns with powers introduced by the Economic Crime and Corporate Transparency Act 2023, which came into operation in April 2024. An enforcement officer can seek a crypto-wallet freezing order when there are reasonable grounds to suspect that assets held through a UK-connected cryptoasset service provider are recoverable property or intended for unlawful conduct.
If a judicial authority grants the order, the wallet cannot be used for withdrawals, payments or other activity except where the court permits exclusions. The assets remain with the service provider while the order is in effect.
Detective Constable Anthony Davis said the case showed how blockchain records can serve as solid evidence in financial investigations. The force said recovered POCA funds are reinvested into community and policing initiatives, including education, early intervention, training and crime prevention.
Related: UK Jails Three Men Over $5.4M Fake Police Crypto Scam
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