How much have the Serious Fraud Office (SFO) and HM Revenue and Customs (HMRC) used Crypto Wallet Freezing and Forfeiture Orders since their April 2024 introduction?

Introduction of Crypto Wallet Freezing Order

In 2023, the Economic Crime and Corporate Transparency Act (the “ECCT”) amended the Proceeds of Crime Act 2002 (POCA) to support the recovery of cryptoassets. One specific amendment enables the introduction of a Crypto Wallet Freezing Order (“CWFrO”) and Crypto Wallet Forfeiture Order (“CWFO”). These became active in April 2024.

These are intended to work broadly in the same way as an Account Freezing Order but addressing the unique features of the technology underpinning cryptoassets.

We have explored the CWFrO in a recent blog.

In April 2024, we noted that it would, in due course, be interesting to obtain data about the use of CWFrOs and CWFOs by various UK Government enforcement agencies.

Gherson Freedom of Information Requests to the SFO and HMRC

Given that over a year has now elapsed, Gherson Solicitors LLP have recently submitted Freedom of Information Requests (“FOIs”) to the SFO and HMRC to establish the extent of these agencies’ use of CWFrOs and CWFOs since their introduction last year.

The results are telling.  Read on to find our more.

Is there a difference between the SFO and HMRC’s use of CWFrOs and CWFOs?

In a word – yes.

SFO’s use of CWFrOs and CWFOs

In fact, the SFO have confirmed that they have not sought or obtained any CWFrOs and CWFOs since their introduction last year.

This is interesting given that the SFO’s Business Plan 2025-26 made specific reference to activities to develop the expertise of their specialist staff in relation to “new capabilities in cryptoassets”.

HMRC’s use of CWFrOs and CWFOs

HMRC, on the other hand, have confirmed use of both CWFrOs and CWFOs.

The figures are low, however: for the years 2024-2025 and 2025-2026, HMRC has confirmed that it has sought less than five CWFrOs and less than five CWFOs.

Exact numbers are not provided to prevent the risk of identifying the individuals concerned.

Use of CWFrOs and CWFOs by other UK Government Law Enforcement Agencies

It would also be interesting to establish how many CWFrOs and CWFOs have been obtained by the National Crime Agency (“NCA”).

However, the NCA is not subject to the same FOI laws that govern the SFO and HMRC which means that establishing their statistics is not as easy.

The NCA does, however, frequently publish information when they believe they have achieved a good result.

What does all this mean?

CWFrOs and CWFOs are just one of the tools in the armoury of UK law enforcement agencies and will only suit certain investigations.

However, the FOI results demonstrate that HMRC have so far been more ready to utilise these new powers.

When comparing both agencies’ use of Account Freezing and Forfeiture Orders, we have previously noted how the SFO by nature only investigates a limited number of large and complex cases, and this could be one of the reasons why the number of CWFrOs and CWFOs used by the SFO is currently nil.

The rise and fall of the SFO’s Account Freezing Orders?

It is nevertheless still surprising that the SFO have not sought any of these orders given the priorities identified in their Business Plan.

HMRC, on the other hand, conducts many more small and domestic investigations which could explain its slightly increased use of CWFrOs and CWFOs.

Finally, it is possible that HMRC have simply been more willing to react to technological changes.

What is an Account Freezing Order and Account Forfeiture Order?

We have covered Account Freezing Orders (“AFrOs”) and Account Forfeiture Orders (“AFrOs”) extensively in previous articles, along with the SFO’s use of the latter.

What is an Account Freezing Order?

The rise and fall of the Serious Fraud Office’s Account Freezing Orders?

How to Challenge an Account Freezing Order

We have also discussed how a crypto wallet freezing order works.

NAVIGATING FINANCIAL INSTITUTION RELATED CHALLENGES

What can I do to try and challenge a wrongful decision to close my personal and/or bank account(s)

We are increasingly being approached by individuals who have been “de-banked” in circumstances where they believe they have always acted in full compliance with the relevant bank account’s Terms and Conditions and all other legal and applicable rules and regulations.

We have written previously about how issues such as account closures are not limited to political figures in the UK, and how they may affect thousands of lawful private and business customers every year. These cases have exposed the difficult balance many financial institutions and their private and business customers must navigate in order to obtain and maintain access to basic banking services.

To assist those whose accounts have been closed, Gherson’s financial crime, investigations and regulatory team have previously written the following blogs:

“Why has my bank account been closed”

“Why has my business bank account been closed?”

“140,000 SMEs “de-banked” last year – why could I have been de-banked?”

“What are the proposed new laws aimed at preventing de-banking?”

“Why the proposed new laws to try and prevent de-banking to not go far enough”

“Am I entitled to a basic bank account in the UK?”

“How to challenge crypto-related bank account closures”

What can I do to try and challenge a wrongfully imposed CIFAS marker

We are also being approached more and more frequently by individuals who feel that a financial institution has wrongfully imposed a CIFAS marker in their name.

If you have always acted in full compliance with the relevant bank account’s Terms and Conditions and all other applicable legal rules and regulations then you should have a good basis for challenging the bank’s decision to implement any CIFAS markers.

A strong challenge will often involve demonstrating through evidence that you have not breached the bank’s Terms and Conditions or any rules and regulations, and that all transactions were at all times carried out in full compliance will all applicable laws and regulations.

In a previous blog we examined what a CIFAS marker was and how to try to get it removed and also what you can do if a CIFAS marker has been wrongfully imposed.

We have also recently examined how to go about challenging a crypto-related CIFAS marker: see Challenging a crypto-related CIFAS Marker: what you can do.

Adverse Information on Compliance Databases

Increasingly, we are also being approached by individuals who feel that incorrect and/or inaccurate data stored about them on compliance databases is having an adverse effect on their relationship with financial institutions resulting in subsequent issues such as bank accounts being closed and difficulties in opening new bank accounts.

We have also written a serious of blogs looking at the main functions of compliance databases such as World-Check and how you can correct information held about you on such databases.

HOW GHERSON CAN ASSIST

Gherson’s regulatory, white-collar and investigations team are highly experienced in providing assistance on what you can do if your bank freezes or closes your account. This includes assisting you in submitting a request under data protection legislation, otherwise known as a Data Subject Access Request, to ascertain what information banks and other financial institutions may be holding on you and their decision making, and then analysing the response and assisting with any appropriate challenge.

If you have any questions arising from this blog, please do not hesitate to contact us for advice, send us an e-mail, or, alternatively, follow us on X, Facebook, Instagram, or LinkedIn to stay-up-to-date.

The information in this blog is for general information purposes only and does not purport to be comprehensive or to provide legal advice.  Whilst every effort is made to ensure the information and law is current as of the date of publication it should be stressed that, due to the passage of time, this does not necessarily reflect the present legal position.  Gherson accepts no responsibility for loss which may arise from accessing or reliance on information contained in this blog.  For formal advice on the current law please do not hesitate to contact Gherson.  Legal advice is only provided pursuant to a written agreement, identified as such, and signed by the client and by or on behalf of Gherson.

©Gherson 2025