The UK plans to sell over 5 billion British pounds ($6.7 billion) worth of seized Bitcoin to address a budget deficit. Law enforcement, including the Home Office and Treasury, are working on the sale, which could impact the recent Bitcoin rally. The seized Bitcoin, at least 61,000 BTC, was confiscated from a Chinese Ponzi scheme in 2018.

Victims of the Ponzi scheme are contesting the UK’s sale of the Bitcoin, as they seek to have it returned to them. Chinese authorities and victims are demanding the Bitcoin back, causing a legal hurdle for the sale. The Crown Prosecution Service is seeking court approval to keep the seized Bitcoin, potentially splitting the proceeds between law enforcement agencies.

The UK government previously put out a tender for a “crypto storage and realisation framework” worth £40 million to manage seized crypto, but it was terminated due to lack of suitable bids. Bitcoin Policy UK has urged the government to retain the Bitcoin assets, warning that selling them could have long-term economic consequences. The government is facing pressure to reconsider selling the seized Bitcoin.

Read more at Cointelegraph: UK Eyes $7B Seized Bitcoin Sale To Boost Budget: Report