In a landmark move reflecting the growing influence of digital currencies, the UK’s Insolvency Service has appointed its first dedicated cryptocurrency intelligence analyst to tackle the sharp rise in bankruptcy cases involving crypto assets such as Bitcoin and Ethereum.
The decision follows a staggering 420% increase in insolvency cases where crypto holdings have been identified as recoverable assets.
Andrew Small, a former police investigator with expertise in economic crime, has been named to the newly created position within the agency’s Investigation and Enforcement Services division.
His remit includes the identification, assessment, and recovery of crypto assets held by individuals or businesses going through insolvency proceedings.
Speaking on the appointment, Small said: “There has been a rapid rise in crypto ownership in the UK, and with that, a noticeable increase in cases where crypto assets form part of bankruptcy proceedings. Our role is to trace and recover funds to help repay creditors as efficiently as possible.”
Recent figures highlight the scale of the issue. In the 2024/25 financial year, the Insolvency Service traced £523,580 worth of crypto across 59 cases—compared to just £1,436 in 14 cases five years earlier in 2019/20.
The appointment underscores the UK government’s response to the broader adoption of cryptocurrencies and blockchain-based assets.
Research from the Financial Conduct Authority (FCA) reveals that an estimated 7 million UK adults—12% of the population—owned crypto assets in 2024, up from 3.2 million in 2021.
Assets being tracked include popular cryptocurrencies like Bitcoin, Ethereum, and Litecoin, alongside non-fungible tokens (NFTs) and other digital tokens.
The Insolvency Service believes that enhancing its ability to recover digital assets will significantly boost returns to creditors and improve enforcement outcomes across insolvency cases.
