Crypto-assets seized in Arena TV fraud investigation

The Serious Fraud Office (SFO) has frozen equivalent to £10,865.76 in Bitcoin and £289.30 USDC (a digital currency) belonging to Richard Yeowart, a suspect in its ongoing investigation into collapsed outside broadcast company Arena TV. The move marks the first time the agency has used new powers that came into force last year to freeze cryptocurrency.

The assets, identified by proceeds of crime specialists at the SFO as linked to suspected criminality, were frozen following a hearing at Westminster Magistrates’ Court this week.

They will now be held for up to nine months to allow any affected parties to come forward.

The SFO’s case, which remains ongoing, has so far involved a raid, three arrests and the search of three properties in an investigation involving a range of suspects.

SEO Director of Operations, Emma Luxton, said: “We are committed to using every tool at our disposal to prevent criminals from benefiting from their crimes, wherever they hide their assets.

“Our first Crypto Wallet Freezing Order is an important step as we build our crypto asset capability and signals our intentions as we adapt to tackle increasingly sophisticated attempts to hide criminal assets.”

Arena TV collapsed into administration in November 2021, triggering what has been described as one of the biggest alleged frauds in the history of asset-based lending. Administrators Kroll estimated that around £280 million was owed to some 55 lenders who had provided funding for cameras, trucks and a range of outside broadcast equipment.

Investigations revealed examples of fake serial numbers on items, claims of funds for equipment which did not exist, or multiple loans against the same asset. Yeowart, Arena TV’s founder and owner, and co-director Robert Hopkinson, are said to have left the company abruptly following its collapse. They were made bankrupt in February 2022 and their whereabouts are believed to be unknown.

Since the collapse, Acquis Data Services has developed Acquis Lumia, an industry-wide register of asset finance borrowing which provides real-time insight into a business’s existing asset finance obligations, giving lenders greater visibility to assess risk and reduce fraud. The platform has recently announced that grenke has become the 40th organisation to join its growing network.