Crackdown on Cryptocurrency Fraud
In a significant crackdown on cryptocurrency fraud, three individuals have been apprehended by the Economic Crime Command of the Metropolitan Police in the UK. This action is part of a broader investigation named Operation Galafarm, which has been scrutinizing fraudulent activities tied to fake investment schemes that have misled numerous victims. A police spokesperson informed Decrypt that it is believed that over £15 million (around $20 million) has been illicitly funneled through a network of phony companies related to these scams.
Details of the Investigation
As part of their operation, authorities executed search warrants at six different locations within London. On May 7, two of the suspects, aged 24 and 36, were taken into custody in Hackney, while a third man, also 36 years old, later presented himself to the police. Currently, all three suspects have been released on bail as investigations continue.
UK’s Efforts Against Cryptocurrency Crimes
In recent years, UK law enforcement agencies, including the National Crime Agency (NCA), have amplified their initiatives to combat crimes associated with cryptocurrency. The government has enhanced the legal powers available to these authorities, enabling them to effectively seize, freeze, and eliminate digital assets that criminals utilize. Reports estimate that the UK is linked to illicit crypto dealings amounting to approximately $5.1 billion annually.
UK Government’s Bitcoin Holdings
Furthermore, data from Arkham Intelligence indicates that the UK government currently possesses over 61,000 bitcoins, amounting to more than $6.1 billion—an asset that has significantly appreciated as Bitcoin prices soared earlier this week. Despite significant holdings, recent statements from the Economic Secretary to the Treasury clarified that the UK has no intentions to create a strategic Bitcoin reserve, unlike the approach taken by the United States under former President Donald Trump.
Emma Reynolds, the MP, articulated at the Financial Times Digital Asset Summit that establishing such a reserve does not align with the UK’s market strategy.
Public Concerns Over Government Holdings
The lack of action regarding the sale of Bitcoin held by the government has raised concerns amidst proposed welfare reductions, particularly those affecting winter fuel payments for senior citizens, leading to scrutiny over the public finances and government priorities.
