Insolvency Service hires first crypto expert

In a notable development for the insolvency landscape, the UK's Insolvency Service has appointed its first dedicated crypto intelligence specialist, Andrew Small. This move aims to enhance the agency's ability to recover money and assets from individuals declaring bankruptcy, particularly as digital assets like Bitcoin become more prevalent in these cases. Andrew, a former police investigator, will leverage his expertise to trace digital assets involved in both bankruptcy and criminal investigations.

The rise of cryptocurrency has been astonishing, with the number of insolvency cases identifying crypto as a recoverable asset surging by 420% over the past five years. "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," Andrew noted. Furthermore, the actual value of crypto assets uncovered in insolvency proceedings has exploded, increasing from just over £1,400 in 2019/20 to more than £520,000 in 2024/25.

The Insolvency Service is charged with the responsibility of tracing and recovering money from bankrupt individuals or companies. With a staggering £523,580 identified in crypto assets across 59 insolvency cases in 2024/25, the new role will be pivotal in maximising funds returned to creditors. The agency’s head of intelligence, Neil Freebury, underscored the importance of this appointment by stating, "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 will work within the Investigation and Enforcement Services team, focusing his efforts primarily on crypto assets tied to criminal cases. He aims to impart specialist knowledge on the types of crypto assets and the technologies used for their transactions. The announcement comes alongside a significant uptick in the popularity of cryptocurrencies among the UK population, with a Financial Conduct Authority 2024 study revealing that 12% of adults now own some form of crypto, compared to just 4.4% in 2021.

As the integration of digital assets into the fabric of financial insolvency deepens, Andrew’s role is expected to play a critical part in navigating this evolving landscape, ultimately serving to enhance the agency's effectiveness in recovering funds owed to creditors.