Paul Chowles, a former officer with the UK's National Crime Agency (NCA), was sentenced to five and a half years for stealing 50 Bitcoin valued at $5.9 million.
Theft of Bitcoin and Sentencing
The Crown Prosecution Service reported that Chowles pleaded guilty in May to charges of theft, transferring and concealing criminal property. The 50 Bitcoin were seized as part of the investigation into Silk Road 2.0, which was dismantled in 2014.
Investigation and Use of Bitcoin Mixers
Investigators found that Chowles used services like Bitcoin Fog to obscure the origin of the stolen funds. Chainalysis revealed that portions of the laundered Bitcoin were converted to cash through exchanges or spent via crypto-enabled debit cards.
NCA Response and Investigation Outcomes
Chowles was known within the NCA for his technical expertise in cryptocurrency and the dark web. Early in the investigation, it was assumed only Silk Road 2.0 co-founder Thomas White could have transferred the funds, but evidence later linked Chowles as the insider responsible for the theft.
This case highlights the need for thorough vetting of law enforcement personnel working with cryptocurrencies and high-tech environments.
