CompensationU.K.
[F110Z7CM(1)This paragraph applies if no order is made under paragraph 10Z7CA, 10Z7CD or 10Z7CE in respect of cryptoassets detained under this Schedule or held in a crypto wallet that is subject to a crypto wallet freezing order under paragraph 10Z7BB.
(2)Where this paragraph applies, the following may make an application to the relevant court for compensation—
(a)a person to whom the cryptoassets belong or from whom they were seized;
(b)a person by or for whom a crypto wallet to which the crypto wallet freezing order applies is administered.
(3)If the relevant court is satisfied that the applicant has suffered loss as a result of the detention of the cryptoassets or the making of the crypto wallet freezing order and that the circumstances are exceptional, the relevant court may order compensation to be paid to the applicant.
(4)The amount of compensation to be paid is the amount the relevant court thinks reasonable, having regard to the loss suffered and any other relevant circumstances.
(5)If the cryptoassets were seized, or the crypto wallet freezing order was applied for, by an officer of Revenue and Customs, the compensation is to be paid by the Commissioners for His Majesty’s Revenue and Customs.
(6)If the cryptoassets were seized, or the crypto wallet freezing order was applied for, by a constable, the compensation is to be paid as follows—
(a)in the case of a constable of a police force in England and Wales, it is to be paid out of the police fund from which the expenses of the police force are met;
(b)in the case of a constable of the Police Service of Scotland, it is to be paid by the Scottish Police Authority;
(c)in the case of a police officer within the meaning of the Police (Northern Ireland) Act 2000, it is to be paid out of money provided by the Chief Constable of the Police Service of Northern Ireland.
(7)If the cryptoassets were seized, or the crypto wallet freezing order was applied for, by a counter-terrorism financial investigator, the compensation is to be paid as follows—
(a)in the case of a counter-terrorism financial investigator who was—
(i)a member of the civilian staff of a police force (including the metropolitan police force), within the meaning of Part 1 of the Police Reform and Social Responsibility Act 2011, or
(ii)a member of staff of the City of London police force,
it is to be paid out of the police fund from which the expenses of the police force are met;
(b)in the case of a counter-terrorism financial investigator who was a member of staff of the Police Service of Northern Ireland, it is to be paid out of money provided by the Chief Constable of the Police Service of Northern Ireland.
(8)If the cryptoassets were seized, or the crypto wallet freezing order was applied for, by an immigration officer, the compensation is to be paid by the Secretary of State.
(9)If an order under paragraph 10Z7BB, 10Z7CA, 10Z7CD or 10Z7CE is made in respect of some of the cryptoassets detained or held, this paragraph has effect in relation to the remainder.
(10)This paragraph does not apply if the relevant court makes an order under paragraph 10Z7CK or 10Z7CL.
(11)In this paragraph “relevant court” means—
(a)in England and Wales and Northern Ireland, a magistrates’ court;
(b)in Scotland, the sheriff.]
Textual Amendments
F1Sch. 1 Pts. 4BA-4BD inserted (26.10.2023 for specified purposes, 26.4.2024 in so far as not already in force) by Economic Crime and Corporate Transparency Act 2023 (c. 56), s. 219(1)(2)(b), Sch. 10 para. 2; S.I. 2024/269, reg. 4(c)