A National Crime Agency (NCA) officer, Paul Chowles, has been sentenced to five and a half years in prison for stealing £4.4 million worth of bitcoin that was confiscated during a joint operation with the US Federal Bureau of Investigation (FBI). Chowles, 42, was involved in investigating Thomas White, who operated an online drug market known as Silk Road 2.0, which launched shortly after the original Silk Road was shut down by the FBI in 2013.
The scheme unraveled when White, under investigation, reported that 50 of his bitcoins were missing, suspecting inside involvement from the NCA due to their access to his cryptocurrency wallet. Following discussions between the local Merseyside police and NCA, it was determined that the theft had occurred between May 6 and 7, 2017, after Chowles had concluded his investigation into White.
Over the next five years, Chowles laundered the stolen bitcoin on the dark web, spending approximately £613,000 on everyday expenses, including groceries and fuel, largely through debit card transactions. Initially valued at £60,000 at the time of the theft, the bitcoin’s worth surged significantly during the period of his illicit spending.
Investigators traced the crimes to Chowles via his iPhone, which connected him to a bitcoin transfer account, along with his browsing history related to a cryptocurrency exchange. Additionally, multiple notebooks were found in his office, containing details of White’s cryptocurrency accounts.
Alex Johnson from the Crown Prosecution Service described Chowles as technically savvy and fully aware of the dark web and cryptocurrency’s complexities. After stealing the bitcoins, he attempted to obscure his tracks by using mixing services to hide the money trail.
Detective Chief Inspector John Black, part of the Merseyside police intelligence bureau, stated that Chowles exploited his position within the investigation for personal gain, underestimating the capabilities of law enforcement. Chowles pleaded guilty to charges including theft and concealing criminal property and was sentenced at Liverpool Crown Court for his corrupt actions.