The Serious Fraud Office (SFO) has taken a significant step in its fight against financial crime by freezing over £10,865 in Bitcoin and £289 in USDC belonging to Richard Yeowart, the CEO of Arena TV (you can view the press release here - SFO freezes over 10K in crypto assets from Arena TV’s CEO - GOV.UK). 

This marks the SFO's first use of its new powers under the Economic Crime and Corporate Transparency Act 2023 to freeze cryptocurrency assets (introduced under section 180 of the Act and Schedule 9 which relates to the civil recovery of crypto assets).

Key Details

• The assets were identified by the SFO's proceeds of crime specialists as being linked to suspected criminal activity in the context of the SFO’s broader investigation into the collapse of Arena TV.
• A Crypto Wallet Freezing Order was issued following a hearing at Westminster Magistrates’ Court.
• The frozen assets will be held for up to nine months, allowing affected parties to come forward.

Comment

The numbers involved in this first use of the crypto wallet freezing order are of course small but the significance of the order is far greater. This case demonstrates the SFO’s growing capability to evolve and to tackle sophisticated attempts to hide criminal proceeds using digital assets. By leveraging the new powers under the Act, the agency has sent a clear message: cryptocurrency is no longer a safe haven for illicit gains.