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

How did the constabulary serviceman extremity up becoming a thief?

In a large breach of spot wrong UK instrumentality enforcement, Paul Chowles, a National Crime Agency (NCA) officer, stole 50 Bitcoin (BTC) from a seized wallet connected to Thomas White, an relation of Silk Road 2.0. 

The theft occurred successful 2017 erstwhile the cryptocurrency was valued astatine a full of astir 60,000 British pounds (around $79,000). By the clip Chowles was caught, the crypto’s worth had surged to implicit 4.4 cardinal pounds (around $5.9 million). The 42-year-old serviceman from Bristol utilized the acheronian web and crypto-mixing services to divided the stolen Bitcoin into smaller amounts, transferring them done crypto exchanges and prepaid cards to conceal their source. 

Initially, investigators suspected White had someway regained entree to his funds portion successful custody, but elaborate blockchain investigation revealed Chowles arsenic the culprit. His arrest, condemnation and five-and-a-half-year sentence show that blockchain’s traceability tin exposure adjacent insiders, proving nary 1 is supra 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 arsenic Silk Road, which facilitated the commercialized of amerciable drugs and goods connected the acheronian web. Shortly thereafter, Silk Road 2.0 was launched by British nationalist Thomas White, rapidly gaining popularity. 

This successor tract was besides dismantled successful 2014 done a collaborative effort betwixt UK authorities and the FBI. During the investigation, authorities confiscated 97 BTC from White. These funds were located successful a “retirement wallet” and designated for seizure arsenic portion of his sentence. 

Paul Chowles, a 42-year-old serviceman from Bristol, served arsenic the pb crypto expert for the NCA and was liable for extracting and managing White’s cryptocurrency. Chowles’ expertise was captious successful tracing, securing and documenting these integer assets for instrumentality enforcement. 

Chowles’ relation successful White’s probe gave him entree and the accidental to perpetrate 1 of the NCA’s astir important interior thefts.

Did you know? In 2021, US authorities seized implicit 94,000 BTC linked to the 2016 Bitfinex hack, worthy much than $3.6 cardinal astatine the time. It marked 1 of the astir important fiscal seizures successful US history.

How did Chowles perpetrate the crypto theft?

Between May 6 and 7, 2017, Chowles committed a theft that would yet get him dismissed from his occupation and instrumentality him to prison. 

As the pb crypto expert successful the Thomas White investigation, Chowles utilized his privileged entree to secretly transportation 50 BTC, valued astatine astir 60,000 pounds, from White’s seized “retirement wallet.” To fell the root of the stolen funds, helium divided the Bitcoin into smaller amounts and funneled them done Bitcoin Fog, a crypto-mixing work designed to obscure transaction trails. 

Initially, investigators suspected White, a skilled hacker, mightiness person accessed his confiscated assets from prison. For years, the theft remained unsolved, and by precocious 2021, the NCA considered the 50 BTC untraceable. Chowles’ cautiously planned deception appeared palmy until blockchain investigation aboriginal revealed his fraud and brought his actions to light.

After stealing funds from White’s seized wallet, Chowles softly worked to person the cryptocurrency into cash. As Bitcoin’s worth surged betwixt August 2021 and May 2022, helium began exchanging portions of the funds utilizing crypto-friendly platforms similar Cryptopay and Wirex. 

These services enabled Chowles to person BTC into British pounds, which helium accessed done linked debit cards. During this period, Chowles carried out 279 transactions, spending astir 23,000 pounds betwixt Aug. 26, 2021, and May 20, 2022. Between Aug. 30, 2021, and Feb. 22, 2022, Chowles converted and made 5 withdrawals totalling 6,232 pounds.

According to the Crown Prosecution Service (CPS), Chowles, betwixt Aug. 27, 2021, and July 14, 2021, utilized the Wirex relationship and debit paper to walk the sum of 79,884.77 pounds (valued astatine $107,438.62 connected July 25, 2025). The CPS estimated his gains to beryllium 613,147.29 pounds (valued astatine $824,634.05 connected July 25, 2025). 

Chowles’ usage of mainstream fiscal platforms, combined with his cautious efforts to disguise the transactions, reflected his content that helium could debar detection. However, the measurement and signifier of his spending provided cardinal grounds that allowed investigators to hint the stolen funds.

Did you know? Governments mostly auction seized Bitcoin. The US Marshals Service has sold tens of thousands of BTC since 2014, with immoderate tons snapped up by aboriginal crypto adopters similar Tim Draper, turning authorities plus betterment into unexpected opportunities for investors.

Investigation and unraveling of Chowles’ strategy

In aboriginal 2022, aft his release, White informed authorities that lone an NCA insider could person accessed the private keys to his seized Bitcoin wallet, prompting a Merseyside Police probe into Chowles. 

Investigators seized Chowles’ telephone and notebooks, uncovering credentials, browser past and wallet details that straight linked him to the theft of 50 BTC successful 2017. Using Chainalysis analytics, authorities traced the stolen funds done Bitcoin Fog, a crypto-mixing service, to assorted exchanges, identifying the wealth way contempt Chowles’ efforts to obscure it. 

The operation of integer forensics and blockchain investigation exposed his scheme. Chowles’ meticulous attempts to evade detection unraveled. After astir 3 years of ineligible proceedings, Chowles pleaded blameworthy successful March 2025 to theft, transferring transgression spot and concealing transgression property. His actions highlighted the superior contented of insider misconduct wrong instrumentality enforcement, fixed his relation arsenic a trusted NCA crypto analyst. 

In July 2025, Liverpool Crown Court sentenced the 42-year-old to 5 and a fractional years successful prison. On July 11, 2025, the NCA dismissed Chowles for gross misconduct. The sentencing served arsenic some a punishment and a reminder that adjacent those liable for enforcing the instrumentality look its afloat consequences erstwhile they betray nationalist trust.

Alex Johnson, a specializer authoritative with the CPS, stated that Chowles “took vantage of his presumption moving connected this probe by lining his ain pockets portion devising a program that helium believed would guarantee that suspicion would ne'er autumn upon him.”

Detective Chief Inspector John Black, who investigated Chowles with assistance from the NCA, said, “It volition beryllium highly disappointing to everyone that idiosyncratic progressive successful instrumentality enforcement could impact themselves successful the precise criminality they are tasked with investigating and preventing.”

Aftermath and plus betterment from Chowles

After Chowles’ conviction, authorities worked to retrieve the stolen cryptocurrency. They seized astir 470,000 pounds from Chowles’ accounts and assets, equivalent to 30 BTC astatine existent values. 

The CPS initiated ongoing confiscation proceedings to retrieve immoderate remaining illicit gains for the state. The NCA besides addressed the assets linked to Silk Road 2.0 relation Thomas White. Of the 97 BTC initially seized from White, 47 BTC remained successful custody and was sold by the NCA successful enactment with the tribunal order, generating astir 1 cardinal pounds. 

These recoveries show the state’s expanding quality to trace, prehend and person integer assets into funds, adjacent erstwhile they person been laundered oregon tied to analyzable transgression schemes, ensuring that neither criminals nor corrupt insiders tin flight from the effect of their actions.

Did you know? Crypto seizures often impact cross-border teamwork. Agencies similar Europol, Interpol and the FBI stock blockchain quality to retrieve illicit funds. These associated efforts person led to coordinated takedowns of darknet markets similar Hydra, wherever hundreds of millions successful crypto were frozen and confiscated.

Key lessons from Chowles’ crypto theft

The lawsuit of Paul Chowles serves arsenic a reminder that adjacent instrumentality enforcement insiders tin beryllium tempted to misuse the assets they are entrusted to protect. However, it besides highlights however blockchain’s transparency and precocious investigative tools tin uncover hidden crimes, adjacent years aft they occur.

Here are cardinal lessons from Chowles’ lawsuit and its broader implications:

• Blockchain’s traceability: Despite Chowles’ efforts to conceal the theft utilizing Bitcoin Fog, Chainalysis traced the stolen funds astir 5 years later, demonstrating the efficacy of blockchain analytics.
• Insider risks: Chowles’ entree to backstage keys and forensic tools reveals however trusted officers tin go risks, starring to demands for stricter interior safeguards.
• Legal and regulatory impacts: The lawsuit emphasizes the request for improved protocols for handling cryptocurrency assets, resulting successful enhanced seizure and betterment processes and accrued oversight wrong instrumentality enforcement.