Rachel Reeves is thought to want to sell off a hoard of seized cryptocurrency, which is estimated to be worth around £5billion, to fill in a hole created by the Government’s U-turn on welfare reform in the face of Labour rebels. The Home Office is working with police forces to this end, it has been reported. But, an expert has urged the Chancellor not to go ahead with the Bitcoin sale, as it would “echo past errors and undermine long-term strategy”.
Nigel Green, the CEO of global financial advisors the deVere Group, said that the UK only recently lifted restrictions on retail Exchange Traded Notes (ETNs) in June, as it aims to become a fintech powerhouse. The expert claimed that a surge in regulatory clarity, combined with rising institutional interest, has bolstered Bitcoin’s legitimacy, with sovereign holdings under serious consideration globally. Therefore, he added: “If we advocate crypto as strategic, then hastily disposing of seized Bitcoin is hypocritical—and harmful.”
“Fiscal pressure shouldn’t drive poor asset decisions.
“That’s all the more pressing given restoration obligations — victims must be compensated, law enforcement gets its cut, and legal overheads pile up.”
Mr Green also said: “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.”
The specialist pointed to economists often citing Gordon Brown’s gold sales between 1999 and 2002 as a cautionary tale, with the material sold at depressed prices, and the assets were later criticised for heavy losses when bullion rose.
The then Labour Chancellor sold 395 tonnes of gold between 1999 and 2002, raising approximately $3.5billion.
The timing has been criticised by experts, who pointed out that it was the bottom of gold’s two-decade bear market at the time.
The deVere CEO said: “They sold gold in a dip, only to regret it years later. We risk replaying that error with Bitcoin.”
He added that “emergency fiscal relief is not always best served by fire-sale tactics”.
“If countries like the US, the world’s largest economy, are seriously weighing Bitcoin as a reserve, why would the UK liquidate instead?
“How the Chancellor handles this will shape market and public confidence. It’s about whether we lead intelligently—or just chase headlines.
“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.”