Scottish court seizes $144,000 in first crypto confiscation

A significant legal precedent was set in Scotland when £110,000 (approximately $144,000) was confiscated from John Ross Rennie, marking the first use of the country's proceeds of crime laws to seize cryptocurrency.

The ruling was made at the High Court in Edinburgh, highlighting a new approach to handling digital assets in criminal proceedings.

Rennie, 29, from Cambuslang, was found guilty of handling stolen goods following a violent home invasion in Blantyre, near Glasgow, in March 2020.

During the incident, a resident was threatened with a machete and coerced into transferring 23.5 Bitcoin, worth about £109,601.

A female victim was reportedly assaulted with a customized Toblerone bar and thrown into a room.

The attacker then made a threatening gesture with the bloodied chocolate bar before escaping.

Although Rennie denied participating in the robbery, he was identified as the "technical brains" who facilitated the cryptocurrency transfer.

Despite his involvement, Rennie was sentenced to only 150 hours of community service and placed under supervision for six months.

To tackle the rise in cryptocurrency-related crime in the UK, the Financial Conduct Authority (FCA) has ramped up its focus on crypto firms, dedicating about 30% of its financial crime team to this area.

In April, the UK Home Office enacted new powers that allow law enforcement to seize cryptocurrencies connected to criminal activity without an arrest.

These changes, stemming from last year’s crime legislation, are designed to hasten the seizure of illicit assets.

Police forces across the UK have also positioned crypto tactical advisors, leading to the confiscation of significant amounts in digital currency.

Additionally, a collaboration between the National Crime Agency and the US Drug Enforcement Administration earlier this year resulted in the seizure of $150 million in cash and cryptocurrency from a drug trafficking network.