Ex-UK Crime Officer Sentenced for Stealing 50 Bitcoin from Silk Road 2.0 Probe
Former National Crime Agency Operative Jailed for Crypto Theft Worth Nearly $6M
A former officer of the United Kingdom’s National Crime Agency (NCA) has been sentenced to five and a half years in prison after stealing 50 Bitcoin—valued at approximately $5.9 million—from a criminal investigation into Silk Road 2.0, a successor to the infamous darknet marketplace.
The Crown Prosecution Service (CPS) announced that Paul Chowles, once a trusted operational lead within the NCA’s cybercrime division, admitted guilt to theft, transferring criminal property, and concealing criminal property during court proceedings in May.
How the Theft Unfolded
Chowles, once praised internally as a technically skilled analyst fluent in the complexities of the dark web and digital currencies, was tasked with processing data from seized devices belonging to Silk Road 2.0 co-founder Thomas White.
Authorities had confiscated 97 Bitcoin from White during his arrest in November 2014. But in May 2017, 50 BTC—worth $79,000 at the time—were quietly moved from the seized wallet to an external address.
The stolen coins were routed through the anonymizing service Bitcoin Fog, a crypto mixer designed to obscure digital trails. This laundering tactic was intended to mask the funds’ origin before Chowles spent them using crypto-enabled debit cards or converted them via crypto exchanges.
Chainalysis Traces the Funds
Forensic blockchain firm Chainalysis revealed that its tools helped track the flow of the stolen crypto through the mixer, identifying that portions were used for cash withdrawals or online purchases using crypto cards.
White Sounded the Alarm
While investigators initially blamed White for the unauthorized transfer, White maintained that only the NCA had access to his private keys. His assertion prompted further inquiry.
Officers from Merseyside Police reviewed the matter with the NCA, during which Chowles attended the meetings—sitting in on discussions about a theft he had committed.
Police later arrested Chowles after discovering a phone linked to the suspicious Bitcoin transactions. Investigators also uncovered notebooks in Chowles’ office containing detailed credentials for White’s crypto wallets, including usernames, passwords, and account statements.
Spending and Seizures
Chowles used two crypto-funded debit cards to spend £109,425 ($146,580). However, authorities estimate his total financial gain reached £613,150 ($821,345).
The CPS has confirmed that confiscation proceedings are underway, aiming to recover as much of the stolen wealth as possible.
“He took advantage of his position working on this investigation by lining his own pockets while devising a plan that he believed would ensure that suspicion would never fall upon him,” said CPS specialist prosecutor Alex Johnson.
A Breach of Trust in Cybercrime Enforcement
The case underscores vulnerabilities in law enforcement’s handling of digital assets and reinforces the need for transparency and accountability—even within elite cybercrime units.
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