Lancashire Police Sells Seized Bitcoin, Gets £500K Windfall But Draws Social Media Flak, Not Praise

Lancashire Police have secured £500,000 for crime prevention projects after selling Bitcoin seized from an organised crime gang. The cryptocurrency, frozen under a UK wallet‑freezing order for the first time, was sold following a court‑approved process.

While police described the seizure as a breakthrough in tackling digital crime, reaction online was far from celebratory. Many social media users questioned whether selling the Bitcoin immediately was the best financial decision and raised concerns about how the proceeds would be used.

First UK Crypto Wallet Freeze

The case stems from a high‑profile investigation concluded in January 2025. Officers traced a gang responsible for stealing more than £20 million in Bitcoin from an Australian‑based exchange. The criminals exploited a glitch in the platform’s systems to carry out the theft. Lancashire Police seized 445 BTC, originally worth £22 million in 2017, which had risen in value by the time of recovery.

Once victims were fully compensated, a surplus of £1 million remained. Under the Proceeds of Crime Act, half of that went to the Home Office and half was awarded to Lancashire Police. The force said its £500,000 share will be allocated to the Prevention and Problem‑Solving Innovation Fund, which supports tools such as drones, data‑analysis software and spam‑blocking systems.

Public Scepticism Online

Although the case marked a legal first, reaction on social media was mixed. Some users voiced distrust over the process. One person posting on X, formerly Twitter, said, ‘So the police stole from the victims.’ Another user on X wrote, ‘So they just stole a bunch of the Bitcoin by basing it off USD value? How very UK.’

Others took a more positive view. Bitcoin journalist Decentra Suze posted, ‘Once again, Bitcoin proves it’s bad for criminals and good for communities. Bullish.’

Confusion also emerged over the nature of the assets involved. One X user commented, ‘In reality, the scammers stole fiat and converted it to bitcoin.’

While the force has said the funds will be reinvested into crime prevention and community safety, several users called for more transparency over how the £500,000 will be spent and whether it will be subject to independent audit.

Crypto Volatility and Legal First

The operation marks the first time a UK police force has used a crypto wallet‑freezing order under proceeds of crime legislation, according to AInvest. Officers said it could serve as a model for future digital asset seizures, demonstrating that law enforcement can adapt to the realities of blockchain‑based crime.

Critics, however, highlight the volatility of cryptocurrency prices. Assets can lose substantial value before liquidation, they warn, potentially reducing the benefit to victims and public funds. Some Reddit users cited larger government‑held cryptocurrency reserves, worth billions of pounds, that remain unsold amid debate over when such assets should be converted to cash.

Lancashire Police say the £500,000 windfall will directly support initiatives aimed at reducing crime in the county. Yet the mixed public reaction reflects wider unease about the relationship between cryptocurrency and public finance.

While the seizure and sale stand as a milestone in the UK’s response to digital crime, questions remain over transparency, the timing of asset sales and the long‑term value of holding or selling seized cryptocurrency. For some, the case will only be seen as a complete success if investment in new policing tools delivers measurable benefits and maintains public trust.