By Why Did The NCA Freeze Sorare-Linked Funds?
The UK’s National Crime Agency has reportedly frozen £10 million, or about $13.5 million, as part of an investigation involving blockchain-based sports company Sorare and allegations of unlicensed gambling activity.
The funds were frozen following an order issued by Westminster magistrates’ court in January 2025. The measure does not itself establish criminal wrongdoing, but prevents the money from being moved while investigators examine its origin and any connections to alleged third-party criminal activity.
A spokesperson said the order was intended “to prevent dissipation of the funds while the NCA investigates any potential links between those funds and alleged third-party criminality.”
Sorare operates a fantasy sports platform built around digital trading cards recorded on blockchain networks. Users collect and trade cards representing professional athletes and can use them in fantasy competitions. The structure has previously drawn attention from regulators examining where blockchain gaming, collectibles and gambling laws overlap.
The investigation adds another layer of scrutiny for a company that previously secured one of the largest crypto-related commercial agreements in English football.
What Happened To Sorare’s Premier League Deal?
Sorare signed a four-year partnership with the Premier League in 2023 in a deal valued at $162 million. The agreement gave the company access to players and branding from one of the world’s most commercially valuable football competitions.
The partnership was terminated at the end of last season, bringing the arrangement to an early conclusion. Its end now carries additional relevance as UK authorities increase scrutiny of companies linked to football clubs and competitions, particularly where gambling, crypto assets or financial services are involved.
The case also shows the regulatory difficulty facing blockchain businesses whose products do not fit neatly into traditional categories. A digital collectible may function as a tradeable asset, a gaming item and part of a competition at the same time, leaving regulators to determine which rules should apply.
For Sorare, the outcome of the NCA investigation could affect more than the frozen funds. Any findings concerning licensing or the treatment of its products could influence how similar fantasy sports and blockchain platforms structure their UK operations.
Investor Takeaway
The £10 million freeze is not proof of wrongdoing, but it adds regulatory risk around a business model sitting between fantasy sports, digital collectibles and gambling. The larger question is whether UK authorities adopt a stricter approach to blockchain products tied to sports competitions.
Why Are UK Regulators Looking More Closely At Sports Sponsors?
The Sorare investigation arrives as UK authorities place greater attention on commercial relationships between sports organizations and companies operating in regulated financial or crypto markets.
In June, the Financial Conduct Authority said it had written to Premier League clubs about “questionable sponsorship deals” involving businesses that were not authorized to operate in the UK. The warning covered companies connected to crypto as well as other financial activities.
That creates an additional compliance issue for football clubs. Sponsorship agreements can provide substantial revenue, but clubs may face reputational or regulatory exposure if commercial partners offer services to UK consumers without the required permissions.
The scrutiny does not mean crypto sponsorship has disappeared from English football. Several Premier League clubs continue to work with digital asset companies. Chelsea has a sponsorship relationship with stablecoin issuer Circle, while Manchester City works with cryptocurrency exchange OKX.
The difference is that clubs may need to conduct deeper checks on prospective partners, including whether they hold applicable UK permissions, what products they market and whether sponsorship campaigns could be interpreted as promoting regulated services.
What Does The Case Mean For Crypto Sports Sponsorships?
Crypto companies became major sports sponsors during the previous digital asset bull market, using football clubs, Formula One teams and other global properties to reach large retail audiences. That spending slowed after the 2022 market downturn, when company failures and falling cryptocurrency prices made sports organizations more cautious about their associations with the sector.
The UK’s tougher approach could add another reason for clubs to be selective. A sponsorship agreement with a crypto company may now require greater attention to licensing status and the precise services being promoted, rather than relying only on the financial value of the deal.
For crypto businesses, sports partnerships may also become less useful if regulatory restrictions limit how aggressively they can convert sponsorship visibility into customer acquisition. Companies operating fully within UK rules could benefit if tighter oversight reduces competition from offshore or unlicensed rivals.
Sorare’s case will therefore be watched beyond the company itself. The investigation could help define how UK authorities treat products that combine blockchain assets, fantasy sports and financial value, while the FCA’s parallel scrutiny of football sponsorships increases pressure on clubs to examine who they promote to supporters.