UK court ruling boosts government’s chances of keeping $5 billion in seized bitcoin

“The relevant damage occurred in China. The applicants parted with their money in China. The alleged fraudulent representations were made in China,” the judge said. “The contractual relationships thereby induced were entered into in China. The immediate economic consequences of the alleged wrongdoing were likewise suffered in China.”

Note that the ruling does not finally decide who keeps the bitcoin. But it narrows the victims’ route to recovering it and improves the chances of the U.K. Treasury eventually retaining the seized bitcoin.

The victims’ lawyers are appealing, according to the FT. The Crown Prosecution Service (CPS) says a further hearing will determine whether any victims can establish an interest in the bitcoin.

Across the Atlantic, seized bitcoin have already been institutionalized as part of the national balance sheet. The U.S. established a strategic bitcoin reserve in March 2025, which includes BTC and other coins seized in enforcement actions. No single token has been acquired with taxpayer money. Addresses linked to the U.S. government hold $25.8 billion worth of cryptocurrencies, according to Arkham Intelligence.