Main Points：
- Appointment of Andrew Small as the UK Insolvency Service’s first dedicated crypto intelligence specialist.
- Insolvency cases identifying crypto as recoverable assets have surged by 420% over five years, reaching 59 cases in 2024/25.
- Estimated value of cryptoassets identified has grown 364-fold to over £520,000 (≈$660,000) in 2024/25.
- UK crypto ownership rose from 2.2 million in 2021 to 7 million in 2024, reflecting widespread adoption.
- Global crypto ownership now encompasses 6.8% of the world’s population—approximately 568 million people.
- Role responsibilities include tracing everything from Bitcoin and Ether to memecoins and NFTs, and advising investigators on blockchain technologies.
- Enhanced enforcement capacity is expected to bolster creditor recoveries and deter asset concealment via crypto.
Background: A New Chapter in Asset Recovery
On 9 June 2025, the UK Insolvency Service announced the appointment of Andrew Small as its first-ever crypto intelligence specialist, a role designed to bolster the agency’s ability to trace and recover digital assets in both bankruptcy and criminal investigations. The Insolvency Service, charged with returning assets to creditors when individuals or companies become insolvent, has seen a marked uptick in cases involving cryptocurrencies—an emerging asset class that demands specialized expertise.
Surge in Crypto-Linked Insolvencies
In the fiscal year 2024/25, 59 insolvency cases involved crypto as a recoverable asset, up from just 14 cases in 2019/20—a 420% increase over five years. Concurrently, the total estimated value of these cryptoassets soared from a mere £1,436 to over £520,000, representing a 364-fold rise in aggregate recoverable value. These statistics underline both the growing prevalence of crypto holdings among debtors and the potential for significant recoveries when properly identified and traced.
Andrew Small’s Mandate and Expertise
A former police economic crime investigator, Small brings deep knowledge of illicit financial flows and digital forensics to his new government role. His responsibilities will include:
- Mapping debtor crypto-wallet addresses and transaction histories.
- Advising investigators on blockchain analytics tools and tracing methodologies.
- Training Insolvency Service staff on emerging tokens, DeFi protocols, and custody solutions.
- Liaising with law enforcement and international partners on cross-border asset recovery.
Small remarked, “Crypto is very much a recoverable asset, and my role will help the agency by providing specialist knowledge about the types of cryptoassets available and the associated technology used to buy, sell and store them”.
Domestic Adoption Trends Fueling the Need
The UK has witnessed a sharp rise in crypto ownership: FCA research indicates that the number of residents holding cryptocurrencies jumped from 2.2 million in 2021 to 7 million in 2024—a more than threefold increase over three years. This growth has been driven by factors such as retail investment platforms offering user-friendly onramps, institutional adoption of spot Bitcoin ETFs in the United States, and heightened media attention around DeFi and Web3 projects.
Global Landscape: Widespread User Growth
Beyond the UK, global crypto adoption continues to expand. According to Chainalysis, 6.8% of the world’s population—approximately 568 million people—now own cryptocurrencies, marking a 33% increase in global crypto ownership since 2023. The Chainalysis 2024 Global Crypto Adoption Index also highlights that regions such as Central & Southern Asia and Oceania lead worldwide, while North America commands 22.5% of on-chain value, representing $1.3 trillion in transfers between July 2023 and June 2024.
Technical Challenges in Crypto Asset Tracing
Tracing and recovering digital assets poses several technical hurdles:
- Pseudonymity and Privacy Coins
While blockchains like Bitcoin and Ethereum are pseudonymous, privacy-focused networks (e.g., Monero, Zcash) obscure transaction trails, complicating tracing efforts. - Cross-Chain Transactions and Bridges
Assets moved via cross-chain bridges can span multiple ledger systems, requiring multi-protocol analysis and specialized node infrastructure. - DeFi Smart Contracts
Complex smart contracts—ranging from liquidity pools to yield farms—can trap assets in nested protocols or require bespoke methods to unlock and transfer tokens. - NFTs and Token Standards
Non-fungible tokens (ERC-721, ERC-1155) and token standards on private networks necessitate unique parsing of metadata and asset provenance.
Andrew Small’s prior investigative work in tracking illicit crypto flows in criminal cases equips him to advise Insolvency Service teams on these complexities and recommend cutting-edge analytics platforms.
Broader Regulatory and Industry Context
The UK government has concurrently advanced its crypto regulatory framework, publishing draft legislation and consultation papers on digital asset service providers. This regulatory momentum aligns with global trends:
- The Financial Action Task Force (FATF) has enhanced its Travel Rule guidance to cover crypto transactions, enforcing stricter record-keeping and information sharing among crypto firms.
- The European Union’s Markets in Crypto-Assets (MiCA) regulation is poised to standardize licensing for crypto issuers and service providers across member states.
- U.S. regulators have approved multiple spot Bitcoin ETFs, spurring institutional flows and demanding robust custody and compliance mechanisms.
These regulatory developments increase both the institutional legitimacy of cryptocurrencies and the need for judicial and enforcement bodies to adapt—underscoring the strategic timing of Small’s appointment.
Implications for Creditors and Debtors
For creditors, enhanced crypto tracing capabilities promise higher recovery rates and more comprehensive estate appraisals. Debtors considering crypto as a means of asset concealment should recognize that specialized investigators now have dedicated resources to identify, trace, and repatriate these assets. As Small noted, “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”.
Looking Ahead: Specialization as the New Norm
The appointment of a dedicated crypto intelligence specialist within a major public agency marks a pivotal shift. Traditional financial institutions, enforcement bodies, and insolvency practitioners will increasingly require in-house expertise or external partnerships to manage digital assets effectively. We can expect:
- Scaling of Crypto Recovery Teams: Other jurisdictions may follow suit by establishing crypto units within their insolvency and enforcement services.
- Investments in Analytics: Agencies will allocate budgets toward blockchain forensics tools (e.g., Chainalysis, Elliptic, CipherTrace).
- Cross-Sector Collaboration: Greater collaboration among regulators, law enforcement, and private sector crypto firms to share best practices and intelligence.
As the digital asset ecosystem evolves, the integration of specialized roles like Andrew Small’s will be essential to safeguard creditor interests and uphold the integrity of insolvency proceedings.
Conclusion
The UK Insolvency Service’s landmark appointment of Andrew Small as its first crypto intelligence specialist reflects the undeniable rise of digital assets in both personal and corporate finances. With a 420% increase in crypto-related insolvency cases and a 364-fold surge in recoverable value, the need for expert tracing and recovery capabilities has never been clearer. Small’s expertise will enable the Insolvency Service to navigate complex blockchain technologies, enhance asset recovery, and ensure that creditors receive their rightful dues. As global crypto adoption continues to climb—now touching nearly 568 million users—institutions worldwide must adapt, investing in talent and technology to manage the challenges and opportunities presented by this transformative asset class.
