Insolvency Service Appoints First Crypto Intelligence Specialist to Recover Digital Assets

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The UK’s Insolvency Service has made a landmark move by appointing its first dedicated crypto intelligence specialist, marking a significant step in the government's evolving response to digital asset ownership in financial insolvency cases. Former police investigator Andrew Small will lead efforts to trace and recover cryptocurrencies such as Bitcoin, Ethereum, and NFTs from bankrupt individuals and failed companies—helping return substantial funds to creditors.

This strategic appointment reflects the rapidly growing role of cryptoassets in personal and corporate finance. Over the past five years, insolvency cases involving crypto have surged by 420%, rising from just 14 cases in 2019/20 to 59 in 2024/25. Even more striking is the explosion in the value of recoverable digital assets: from a mere £1,436 in 2019/20 to over £523,000 in 2024/25—a 364-fold increase.

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The Rising Role of Crypto in Insolvency Cases

As cryptocurrency adoption accelerates across the UK, it’s increasingly appearing on balance sheets—both legitimate and fraudulent. The Financial Conduct Authority (FCA) reported in 2024 that 7 million British adults, or 12% of the population, now own some form of crypto. This is up from just 3.2 million (4.4%) in 2021.

This surge in ownership means that digital assets are now a common feature in bankruptcy and liquidation proceedings. Whether held as investments, used in transactions, or acquired through illicit activities, Bitcoin, Litecoin, Dogecoin, Ethereum, and even NFTs are now considered recoverable assets under UK insolvency law.

The Official Receiver Service, which operates under the Insolvency Service, is tasked with investigating the financial affairs of bankrupt individuals and dissolved companies. Their mission is to identify hidden or undeclared assets—including crypto—and ensure creditors receive maximum repayment.

With blockchain technology enabling pseudonymous transactions, tracing these assets requires specialized knowledge. That’s where Andrew Small’s expertise comes in.

A New Era of Cryptoasset Recovery

Andrew Small joins the Insolvency Service from a background in economic crime investigation with UK law enforcement. His experience in tracking illicit financial flows, combined with deep technical understanding of blockchain analytics and digital wallets, makes him uniquely qualified for this pioneering role.

Based within the Investigation and Enforcement Services team, Small will focus on cases where cryptoasset ownership intersects with criminal behavior—such as money laundering, fraud, or asset concealment during bankruptcy.

“There has been a rapid rise in crypto ownership in the UK,” said Andrew. “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.”

His responsibilities will include:

This level of specialization signals a maturation in how public institutions treat digital assets—not as fringe technology, but as mainstream financial instruments requiring expert oversight.

Why Crypto Recovery Matters for the Economy

When individuals or businesses go bankrupt, every recoverable pound counts. Creditors—ranging from small lenders to large financial institutions—depend on asset recovery to recoup losses. In the past, crypto may have been overlooked due to complexity or lack of awareness. But now, with dedicated resources and expertise, the Insolvency Service can close those gaps.

For example, someone might transfer Bitcoin to an offshore wallet before declaring bankruptcy, believing it’s untraceable. However, blockchain analysis can often reveal ownership patterns, IP linkages, or exchange withdrawal records that tie digital assets back to an individual.

By integrating crypto intelligence into standard investigative workflows, the agency enhances transparency, deters fraud, and strengthens public trust in the insolvency system.

Neil Freebury, Head of Intelligence at the Insolvency Service, emphasized the importance of this development:

“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. His appointment will help our investigators dealing with cases where cryptoasset ownership is a factor.”

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Frequently Asked Questions (FAQ)

What is a crypto intelligence specialist?

A crypto intelligence specialist is an expert trained to trace, analyze, and recover digital assets such as Bitcoin and Ethereum using blockchain forensics. In the context of the Insolvency Service, this role supports investigations into bankruptcies and corporate liquidations where crypto may be hidden or undeclared.

Can cryptocurrency be seized in bankruptcy?

Yes. In the UK, cryptocurrencies are treated as property under insolvency law. If someone owns Bitcoin or other digital assets at the time of bankruptcy, those assets must be declared and can be recovered by the Official Receiver to repay creditors.

How does the Insolvency Service trace crypto holdings?

The agency uses blockchain analysis tools to track transactions across public ledgers. By linking wallet addresses to real-world identities—through exchange records, IP logs, or metadata—they can identify and seize cryptoassets even if attempts were made to hide them.

Are NFTs considered recoverable assets?

Yes. Non-fungible tokens (NFTs) represent digital ownership and are increasingly being identified in insolvency cases. Like other cryptoassets, NFTs can be traced on-chain and liquidated to contribute toward creditor repayments.

Why was this role created now?

The timing reflects explosive growth in UK crypto ownership—from 3.2 million holders in 2021 to 7 million in 2024. With more people holding digital assets, there’s a greater need for specialized skills within public institutions to manage their recovery fairly and legally.

Is this appointment part of broader regulation?

While not directly regulatory, this move complements ongoing efforts by the FCA and HM Treasury to bring clarity to cryptoasset oversight. It shows that enforcement agencies are adapting to new financial realities and preparing for long-term integration of digital assets into mainstream finance.

👉 Stay ahead of digital finance trends shaping regulatory action in 2025.

Conclusion

The appointment of Andrew Small as the UK’s first dedicated crypto intelligence specialist within the Insolvency Service marks a pivotal moment in financial governance. As digital assets become more embedded in everyday finance, public institutions must evolve—equipping themselves with the tools and talent needed to ensure accountability.

From tracing hidden Bitcoin wallets to recovering valuable NFTs, this new capability strengthens the integrity of the insolvency system and ensures fair outcomes for creditors. It also sends a clear message: crypto may be decentralized—but it’s not beyond reach.