Paul Chowles, previously working in law enforcement, has pleaded guilty to stealing bitcoins from the Silk Road 2.0 case. The matter gained attention after his arrest.
Charges and Guilty Plea
Paul Chowles, who worked on the dark web task force, pleaded guilty earlier this year to theft and money laundering charges tied to the stolen crypto.
Methods of Concealment
The bitcoins were taken from Thomas White, co-founder of Silk Road 2.0, following his 2014 arrest. In 2017, 50 BTC—then worth around $79,000—were quietly transferred from a seized wallet to another address. Chowles attempted to hide the theft using Bitcoin Fog.
Financial Consequences and Investigation
According to blockchain firm Chainalysis, Chowles spent over £109,000 but profited by around £613,000 ($821,000) in total. Authorities confirmed that confiscation proceedings are underway.
Chowles' case highlights the risks associated with insider threats in law enforcement and the importance of meticulous oversight on cryptocurrency transactions.
