Rachel Reeves could be poised to use a £5.2billion Bitcoin windfall to help address Labour’s much-lamented “black hole” in the public finances.
The cryptocurrency was seized from organised criminals following a major money-laundering investigation into Chinese fraud, in what became one of the world’s largest-ever such seizures.
The sum exceeds the combined annual revenue expected from recent controversial measures, including cuts to winter fuel payments, private school VAT changes, and new farming taxes.
The Bitcoin was seized from Jian Wen, a former Chinese takeaway worker who was jailed for six years in 2024 for money laundering.
Rachel Reeves could be poised to use a £5.2billion Bitcoin windfall to help address Labour’s much-lamented ‘black hole’
TREASURY
Wen had earned just £6,000 working at a Leeds takeaway before becoming involved in the criminal enterprise.
She came to the attention of authorities after attempting to purchase luxury London properties, including a £23.5million mansion in Hampstead with a swimming pool and a £12.5million home featuring a cinema and gym.
The investigation led to the discovery of more than 61,000 Bitcoins in digital wallets.
Former Tory chancellor Norman Lamont urged immediate action, telling the Mail: “I think that Reeves should spend it right away and not hold onto it. Otherwise it looks like the Government is legitimising crypto.”
While Sir Jacob Rees-Mogg added: “If this money does come to rest in the Treasury’s coffers, Rachel Reeves must make use of it as soon as she can.”
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‘If this money does come to rest in the Treasury’s coffers, Rachel Reeves must make use of it as soon as she can,’ Sir Jacob Rees-Mogg said
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Germany has already set a precedent, having sold 50,000 Bitcoins seized from a defunct piracy site for £2.3billion last year.
New legislation introduced in 2023 enables seized cryptocurrency to be sold and transferred to the Government’s Consolidated Fund at the Bank of England.
Barrister Quentin Hunt of 2BR chambers explained: “It gets paid back into the public purse to the Consolidated Fund, which is where all the monies go to which are effectively seized.”
The £5.2billion windfall could help address the so-called £20billion “black hole” in public finances, which Labour has consistently blamed on the former Tory Government.
The Bitcoin originated from an investment scam conducted in China between 2014 and 2017, with alleged mastermind Yadi Zhang set to face trial in London this September.
Wen had initially answered a Chinese social media advertisement to work as a ‘butler’ for someone claiming to run a diamond and antiques trading business.
She later worked for Zhang, allegedly as her carer, before becoming involved in laundering Bitcoin into cash, jewellery and luxury items.
The Crown Prosecution Service is now seeking High Court permission to retain the seized Bitcoin.