- Government preparing structured auction series for 117,000 Bitcoin.
- Proceeds to be routed to general fund ahead of November budget update.
The British government is preparing to turn one of the world’s largest criminal Bitcoin hauls into a fiscal backstop. Officials familiar with the plan say around 117,000 Bitcoin, valued at roughly $7 billion at current prices, will be sold in tranches over the coming months. The coins were seized in multiple fraud and money laundering cases since 2021 and are now held under Home Office custody. If completed, the sale would be the largest public liquidation of crypto assets in the United Kingdom to date. Officials stress that proceeds will flow directly into the Consolidated Fund.
No new info, no depth, just sensationalism over substance.
The Telegraph just dropped another lazy, clickbait Bitcoin article.
It tries to link the UK’s budget deficit to government crypto procurement and floats the idea of selling 61,250 bitcoin right in the middle of a bull… pic.twitter.com/lQ8NIHGbbw
— Decentra Suze (@DecentraSuze) July 20, 2025
Treasury sets timeline
According to senior treasury officials, preparations are at an advanced stage. The Debt Management Office is working with the National Crime Agency and two commercial crypto custodians to verify the chain of custody and to prepare cold wallets for transfer to selected exchanges. Final approval from the chancellor’s office is expected within weeks.
The sale will be split into daily auctions of between 200 and 500 Bitcoin, mirroring the United States Marshals Service approach. Advisers say a measured schedule will minimise market disruption and guard against sudden price swings. The entire programme could conclude before the Autumn Statement scheduled for November 26.
Lawyers involved in cases that yielded the Bitcoin said all appeal windows have closed, clearing legal hurdles. Court documents reviewed by this publication confirm that the assets are now property of the Crown.
Market angles
Traders on crypto derivatives desks in London and Singapore are already pricing in the overhang. Bitcoin’s one month implied volatility ticked up to 47 per cent on Monday, its highest level since April. Futures on the Chicago Mercantile Exchange also shifted into slight backwardation, reflecting expectations of spot supply.
Yet several brokers argue the overhang may be absorbed smoothly. Institutional demand through exchange traded products and corporate treasuries continues to rise, while daily spot turnover on major exchanges now averages more than $25 billion. A six month disposal would therefore add less than 1 per cent of average daily volume.
Still, analysts caution that a poorly timed sale could coincide with monetary policy uncertainty. Any failure to meet revenue targets might force the government to revisit borrowing plans later in the fiscal year.
The Treasury declined to comment. The Debt Management Office confirmed it was “monitoring market conditions” but did not elaborate.
