Former Cop Scores 5.5-Year Prison Sentence For Stealing Bitcoin Worth $6 Million

Chowles's deception began to unravel years after the initial theft. The 50 Bitcoin, valued at a more modest $80k at the time of the theft between May 6 and May 7, 2017, were part of a larger cache of 97 Bitcoin seized from White in 2014. These assets were taken during a joint NCA and FBI operation targeting organized criminal networks operating on the dark web. Chowles, who was tasked with analyzing and extracting data and cryptocurrency from White's seized devices, had privileged access to the digital keys for White's "retirement wallet."

In a sophisticated attempt to cover his tracks, Chowles transferred the 50 Bitcoin from White's wallet to a public address. He then broke down the sum into smaller amounts, funneling them through cryptocurrency mixer Bitcoin Fog to obscure the transaction trail. Subsequently, it's believed that he either converted the illicit gains into pound sterling or utilized Cryptopay and Wirex debit cards, making numerous transactions totaling over $135,000.

For a time, the NCA mistakenly believed that Thomas White himself had managed to access the wallet and reclaim the Bitcoin, and by late 2021, the missing cryptocurrency was deemed untraceable. However, the truth emerged following White's conviction. He steadfastly maintained that an NCA insider must have taken the Bitcoin, asserting that only members of the investigating team possessed the private keys to his wallet. This tip-off spurred a new investigation, spearheaded by Merseyside Police, who were managing White after his release.

During a meeting with NCA counterparts, Chowles’s presence reportedly raised suspicion. As the lead analyst on the Silk Road 2.0 case, he possessed both the means and the access to execute the theft. In May 2022, the law finally caught up with Chowles. His arrest led to the discovery of damning evidence, including an iPhone linked to a Bitcoin transfer account and incriminating browser search history. Furthermore, notebooks found in his office contained usernames, passwords, and statements related to White's cryptocurrency accounts.

Faced with overwhelming evidence, Paul Chowles has pleaded guilty to theft, transferring criminal property, and concealing criminal property. The ex-NCA officer will soon be serving a 66-month prison sentence.