UK police have successfully seized cryptocurrency assets totaling approximately $1.4 million (£1,032,487.86) in Bitcoin and other digital currencies, traced back to illicit darknet markets. This operation involved the recovery of 20.21 Bitcoin, alongside other cryptoassets, marking a significant achievement for law enforcement, facilitated by the powers granted under the Proceeds of Crime Act. The investigation revealed that the person involved had a history of money laundering, although they have since passed away. These illicit activities were part of operations linked to darknet markets, such as AlphaBay, Hansa, and Dream Market, which were operational between 2016 and 2019, until their closure by international law enforcement agencies. This seizure is the largest recorded by the force since new freezing powers were introduced in April 2024, allowing law enforcement to freeze and confiscate such assets more effectively without an arrest.
Darknet markets linked to the investigation operated from 2016 to 2019 and were shut down during a series of law enforcement actions across that period, as authorities moved to close online marketplaces that had been active throughout those years.
AlphaBay was seized in July 2017, an event recorded in the timeline of market closures. Hansa was taken over by Dutch police and ran covertly for a month while the platform remained accessible to users under that control. Dream Market closed in March 2019 and subsequently went dark at the end of April 2019.
Together, AlphaBay’s July 2017 seizure, the month-long Dutch police operation on Hansa, and Dream Market’s March–April 2019 closure form the principal timeline presented in the background to the seized assets. Those dates and actions make up the established shutdown timeline for the markets mentioned in this investigation.
Crypto wallet freezing orders became available in April 2024, introducing new legal powers for law enforcement to target illicit cryptocurrency holdings. Those powers allow officers to freeze and seize crypto assets without an arrest and to move seized assets to wallets controlled by law enforcement. They also permit the confiscation of passwords or storage devices used to access digital assets. When the rules were introduced, privacy coins were singled out as not conducive to the public good.
“Many people think cryptocurrencies… place assets beyond the reach of law enforcement,” said Detective Constable Anthony Davis of the force’s financial investigation unit, pointing to the permanent record on the blockchain as “an invaluable source of evidence.”
These measures provide investigators with tools to effectively preserve evidence held in distributed ledgers and related accounts and also to support criminal and civil forfeiture proceedings.
