How a police officer stole 50 BTC from a seized crypto wallet and got caught

How did the police officer end up becoming a thief?

In a major breach of trust within UK law enforcement, Paul Chowles, a National Crime Agency (NCA) officer, stole 50 Bitcoin (BTC) from a seized wallet connected to Thomas White, an operator of Silk Road 2.0. 

The theft occurred in 2017 when the cryptocurrency was valued at a total of approximately 60,000 British pounds (around $79,000). By the time Chowles was caught, the crypto’s value had surged to over 4.4 million pounds (around $5.9 million). The 42-year-old officer from Bristol used the dark web and crypto-mixing services to split the stolen Bitcoin into smaller amounts, transferring them through crypto exchanges and prepaid cards to conceal their source. 

Initially, investigators suspected White had somehow regained access to his funds while in custody, but detailed blockchain analysis revealed Chowles as the culprit. His arrest, conviction and five-and-a-half-year sentence demonstrate that blockchain’s traceability can expose even insiders, proving no one is above the law.

Background: Silk Road 2.0, Thomas White and the NCA

In 2013, the US Federal Bureau of Investigation closed the illicit online marketplace known as Silk Road, which facilitated the trade of illegal drugs and goods on the dark web. Shortly thereafter, Silk Road 2.0 was launched by British national Thomas White, quickly gaining popularity. 

This successor site was also dismantled in 2014 through a collaborative effort between UK authorities and the FBI. During the investigation, authorities confiscated 97 BTC from White. These funds were located in a “retirement wallet” and designated for seizure as part of his sentence. 

Paul Chowles, a 42-year-old officer from Bristol, served as the lead crypto analyst for the NCA and was responsible for extracting and managing White’s cryptocurrency. Chowles’ expertise was vital in tracing, securing and documenting these digital assets for law enforcement. 

Chowles’ role in White’s investigation gave him access and the opportunity to commit one of the NCA’s most significant internal thefts.

Did you know? In 2021, US authorities seized over 94,000 BTC linked to the 2016 Bitfinex hack, worth more than $3.6 billion at the time. It marked one of the most significant financial seizures in US history.