UK’s First Monero Crypto Seizure Ends in Landmark Payout

In a landmark case, a British man, Jack Edward Finney, was convicted of selling deadly weight loss pills and caught in a complex financial web involving Monero, a cryptocurrency known for its privacy-centric features. Finney’s illegal activities led to the UK’s first ever seizure and subsequent sale of Monero, valued at £15,000 (approximately $19,350), by the Cheshire Cyber Crime Unit.

Monero’s privacy protections, which obscure user transactions and addresses, made it a preferred choice for Finney’s illicit dealings on the dark web, where he also traded viagra and anabolic steroids. However, it was his distribution of 2,4-Dinitrophenol (DNP), a hazardous chemical linked to 33 deaths in the UK due to its extreme effects on metabolism, that ultimately led to his conviction.

The initial seizure and the challenges encountered due to Monero’s private nature were managed successfully, leading to a significant financial recovery. “This posed several challenges due to the particular type of cryptocurrency; however, these were overcome and has resulted in the forfeiture of the funds by the National Food Crime Unit,” stated Detective Sergeant David MacFarlane.

Finney was sentenced to 28 months in prison in 2021 and was additionally fined £23,000. Failure to comply would result in an extra eight months behind bars. The confiscated Monero was not directly accessed by breaking encryption or via exchanges but was surrendered by Finney following a confiscation order. The funds were liquidated through a “cryptocurrency trading platform,” converting them to British pounds, nearly three years after Finney’s sentencing.

In a further tightening of regulations, the British police received expanded powers in April under Rishi Sunak’s administration to seize cryptocurrencies and even “destroy” assets deemed harmful to the public good. While in this instance the Monero was sold rather than destroyed, the action marks a significant stance against the use of privacy coins for criminal activities.

Adrian Foster, Chief Crown Prosecutor, emphasized the case’s significance, stating, “This is the first case where we have converted Monero currency into cash. This shows that criminals cannot hide their money in any cryptocurrencies in the hope it will be safe from the authorities.”

This precedent sets a notable example of the evolving landscape of cryptocurrency regulation and law enforcement’s adaptability in handling privacy-focused digital currencies, particularly those used in unlawful activities.