Law Firm Files FOI Requests on SFO and HMRC Crypto Wallet Freezing Orders

Law Firm Seeks Transparency on Use of Crypto Wallet Freezing and Forfeiture Orders

UK-based law firm Gherson Solicitors has submitted Freedom of Information (FOI) requests to the Serious Fraud Office (SFO) and HM Revenue and Customs (HMRC) to obtain detailed information regarding the application of crypto wallet freezing orders (CWFrOs) and crypto wallet forfeiture orders (CWFOs) since their introduction in April 2024. These legal mechanisms were established to empower authorities in combating financial crimes involving cryptocurrencies by enabling the freezing and seizure of digital assets suspected of being connected to illicit activities.

Divergent Use of Crypto Asset Orders by Authorities

The SFO has confirmed that it has neither sought nor obtained any CWFrOs or CWFOs to date. In contrast, HMRC has acknowledged active utilization of both types of orders. This divergence highlights differing approaches within UK enforcement agencies toward leveraging newly introduced regulatory tools in the fight against crypto-related financial crime.

Challenges and Implications of FOI Requests in the Crypto Regulatory Sphere

Filing FOI requests in this domain presents significant challenges for legal practitioners. The intricate nature of regulatory compliance, potential legal consequences, and the requirement for precise documentation complicate efforts to obtain clear information. As the regulatory framework surrounding digital assets continues to evolve, such inquiries may increase scrutiny on financial institutions engaged in cryptocurrency transactions. This, in turn, could prompt industry participants to strengthen their compliance measures or advocate for more definitive regulatory guidance.

Context Within a Rapidly Evolving Crypto Market

The broader cryptocurrency market remains highly dynamic, marked by recent advancements such as enhanced wallet certification processes, a rise in trademark filings, and the expanding adoption of blockchain technology across sectors including iGaming. These developments underscore the competitive and fast-changing environment in which regulators and market actors operate.

Gherson Solicitors’ FOI requests underscore ongoing efforts to enhance transparency in the enforcement of crypto-related regulations within the UK. As both authorities and industry stakeholders adjust to new legal instruments and shifting market conditions, the deployment and effectiveness of measures like CWFrOs and CWFOs will continue to attract close attention.