The UK Insolvency Service has made a landmark appointment by hiring its first cryptocurrency intelligence specialist to help recover digital assets in bankruptcy and criminal investigations.
Andrew Small, a former police investigator with experience in economic crime, will lead efforts to trace and reclaim crypto assets hidden or unaccounted for in insolvency cases. The move comes in response to a sharp rise in crypto-related bankruptcies in the UK — up 420% over the last five years. During that time, the total value of crypto assets involved has ballooned to £523,580 ($709,500), a staggering 364-fold increase.
“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,” said Small. “Crypto is now very much a recoverable asset.”
The Insolvency Service is tasked with recovering assets from individuals and companies in financial distress to repay creditors. With the increasing presence of digital assets in such cases, Small will provide expertise in identifying various types of cryptocurrencies and understanding how they are bought, sold, and stored.
His role will cover everything from major cryptocurrencies like Bitcoin and Ethereum to meme tokens like Dogecoin and digital collectibles such as NFTs.
Neil Freebury, the Insolvency Service’s head of intelligence, said Small’s appointment would strengthen ongoing investigations and improve collaboration in complex asset recovery cases involving crypto.
This development comes amid a wider effort by UK authorities to tighten regulations on the crypto industry. A recent study by the Financial Conduct Authority found that 12% of UK adults owned cryptocurrency in 2024, up from just 4% in 2021, with average holdings of £1,842 ($2,496).
From January 1, 2026, UK crypto companies will be required to collect and report detailed customer transaction data under new rules designed to increase tax transparency. The regulation forms part of the UK’s implementation of the OECD’s Cryptoasset Reporting Framework.
