UK’s crypto fire sale risks repeating a billion-pound blunder

The UK Chancellor Rachel Reeves is reportedly contemplating a sale of the country's confiscated Bitcoin stash—some 61,000 BTC seized in a 2018 fraud bust—to alleviate an estimated £20 billion fiscal shortfall.

But while offloading crypto could offer short-term relief, Nigel Green, the CEO of global financial advisory giant deVere Group warns it may echo past errors and undermine long-term strategy.

“Turning these assets into instant cash is tempting, but it risks repeating historical errors,” he says, highlighting the lessons of previous government asset sales that have gone sour.

Bitcoin on Sunday surged past the $118,000 mark—its highest point since the $123,000 peak.

The proposal arrives amidst a wider pro-crypto pivot. The UK recently lifted restrictions on retail ETNs in June, aiming to become a fintech powerhouse. The surge in regulatory clarity, combined with rising institutional interest, has bolstered Bitcoin’s legitimacy, with sovereign holdings under serious consideration globally.

Despite this backdrop, Nigel Green voices strong concern. “If we advocate crypto as strategic, then hastily disposing of seized Bitcoin is hypocritical—and harmful.”

“Fiscal pressure shouldn’t drive poor asset decisions.”

He continues: “That’s all the more pressing given restoration obligations—victims must be compensated, law enforcement gets its cut, and legal overheads pile up. Net receipts may shrink to 20–30% of gross proceeds—far less than headlines suggest.

“This isn’t free money. Court battles and administrative fees will eat into what the Treasury actually sees.”

Economists often cite gold sales in the late 1990s as a cautionary tale. Sold at depressed prices, the assets were later criticized for heavy losses when bullion rose.

The deVere CEO draws a parallel: “They sold gold in a dip, only to regret it years later. We risk replaying that error with Bitcoin.”

Indeed, proper timing matters—"emergency fiscal relief is not always best served by fire-sale tactics."

He has previously urged the UK to build a “strategic Bitcoin reserve,” akin to moves under consideration in the US.

His track record of bullish forecasts—Bitcoin nearing $125k—is rooted in believing digital assets will anchor future economic frameworks.

He reiterates: “If countries like the US, the world’s largest economy, are seriously weighing Bitcoin as a reserve, why would the UK liquidate instead?”

Far from being a gamble, it’s a bet on diversification and monetary education. As Nigel Green notes: “Bitcoin can act like digital gold—it’s scarce, decentralized, and a hedge against inflation.”

The consequences extend beyond Pounds and pence—they speak to perception: “How the Chancellor handles this will shape market and public confidence. It’s about whether we lead intelligently—or just chase headlines.”

Indeed, rushed asset sales project instability—it broadcasts that policy swings on crypto are driven by urgency, not strategy. This risks turning the UK from crypto innovator to cautionary tale.

The deVere chief executive concludes: “Is the UK a digital finance pioneer—or panic merchants liquidating seized assets? The choice will help define Rachel Reeves’ and the government’s economic legacy.

“They should act less on timing, more on trajectory.”

About deVere Group

deVere Group is one of the world’s largest independent advisors of specialist global financial solutions to international, local mass affluent, and high-net-worth clients. It has a network of offices around the world, more than 80,000 clients, and $14bn under advisement.