A recent report from Police Scotland has unveiled a shocking 2,000% increase in crypto-related crimes since 2019. The annual 2025 report, presented to the Scottish Police Authority (SPA) Policing Performance Committee, highlights the escalating challenges faced by law enforcement in combating cyber-enabled crimes and fraud, particularly those involving cryptocurrencies.
Authorities emphasize that despite significant advancements in digital forensics and tracking technologies, Scotland still lacks a dedicated cryptocurrency crime unit. However, plans are in motion to rectify this shortfall through the establishment of a Cyber and Fraud Command division, which aims to streamline Scotland’s approach to investigating and prosecuting digital crimes.
Despite these advancements, the ever-evolving landscape of cybercrime continues to present significant threats, underscoring the need for further investments in law enforcement capabilities.
Tackling Crypto Crimes with Technology
In response to the surge in digital crimes, Police Scotland has introduced a range of new technologies and investigative techniques. One notable innovation is the deployment of Digital Evidence Detection Dogs (DEDD), which have proved invaluable in identifying concealed digital devices linked to illicit activities. Since their introduction in April 2024, these specially trained dogs have assisted in recovering 416 digital devices across 134 operations.
Moreover, Digital Forensic Vans (DFVs) have been operational since May 2024, enabling police officers to conduct on-site examinations of digital evidence, significantly reducing processing delays. Cybercrime Investigations and Digital Forensics teams have processed thousands of devices, with 4577 Electronic Request Forms (ERFs) approved for cyber kiosks and an additional 3867 ERFs processed at forensic labs in 2024 alone.
Notably, investigations related to cryptocurrencies have seen a notable increase, with 165 Cryptocurrency Support Requests handled over the past year. This uptick underscores criminals’ growing reliance on digital assets to facilitate money laundering, fraud, and other illicit activities.
One high-profile operation, known as Op EDITORIAL, involved a 21-year-old cybersecurity student who developed a Distributed Denial-of-Service (DDoS) tool, yielding illicit gains exceeding £45,000. The investigation entailed the analysis of millions of data points, including cryptocurrency transactions, server logs, and forensic data, ultimately resulting in the suspect’s sentencing to 21 months in prison.
Meanwhile, the Serious and Organised Crime Financial Investigation Unit (SOCFIU) played a pivotal role in addressing financial crimes involving digital assets. In 2024, SOCFIU investigated 58 cases, leading to the seizure of £7.6 million in assets and the arrest of 55 suspects. Of particular note was a case involving the seizure of over $40 million worth of cryptocurrency stored on USB devices, which has since been subject to civil recovery proceedings.
Growing Crypto Crime Concerns
A significant legal milestone in Scotland’s battle against crypto crime was the unprecedented conversion of stolen Bitcoin into fiat currency under proceeds of crime legislation. This case involved John Ross Rennie, who was found in possession of 23.5 Bitcoin associated with a violent robbery in Lanarkshire in 2020. Scottish prosecutors successfully traced and confiscated the stolen cryptocurrency, valued at approximately £109,601 ($144,017), marking the first instance of digital assets being converted into cash through legal means in the country.
However, concerns surrounding crypto-related crimes persist. The first quarter of 2025 witnessed a staggering $1.64 billion in crypto losses across 39 incidents, marking the worst quarter for hacks in the industry’s history, as reported by Immunefi. Centralized exchange breaches accounted for the majority of these losses, with Bybit losing $1.46 billion in February and Phemex falling victim to a $69.1 million attack in January. Compared to Q1 2024, total crypto losses surged by 390%.
Looking ahead, Scotland is actively addressing these challenges, with a dedicated command unit in development and cutting-edge forensic technologies in place to combat the escalating threat of crypto-related crimes.