SFO Freezes Crypto Assets in Arena TV Case

The Serious Fraud Office (“SFO”) has taken another significant step in its use of civil recovery powers by freezing over £10,000 in cryptocurrency assets belonging to Richard Yeowart, the CEO of the collapsed broadcast company, Arena TV. The assets, comprising Bitcoin and USDC, were frozen following a hearing at Westminster Magistrates’ Court, marking the first time the SFO has exercised its powers to freeze crypto assets under the Economic Crime and Corporate Transparency Act 2023. The assets will be frozen for a period of 9 months whilst the investigation into Arena TV continues. 

This development follows the SFO’s recent success in securing its first Unexplained Wealth Order in a £100 million fraud case involving a property in the Lake District suspected to have been acquired with the proceeds of crime. Together, these actions signal a clear forward trajectory in the SFO’s approach to the use of civil recovery powers under the Proceeds of Crime Act 2002. The use of the relatively new and untested powers introduced by the Economic Crime and Corporate Transparency Act 2023 reflect a broader trend across law enforcement in using new legal tools to address the use of digital assets in criminality that involves complex cross-border financial transactions.

With a wealth of expertise in this area, the Burges Salmon team has experience acting on one of the UK’s first crypto wallet freezing orders. We continue to support clients navigating the intersection of financial crime, digital assets, and civil recovery and we are well placed to advise on the legal, technical and strategic aspects of recoveries involving crypto assets. 

If you have any questions or would like to discuss any issues or themes arising from this development, please contact Michael Ward or Rhiannon Price.