Bitcoin News Today: UK Officer Gets 5.5-Year Sentence for Stealing 50 BTC from Seized Wallet

A UK National Crime Agency (NCA) officer, Paul Chowles, was sentenced to five and a half years in prison for stealing 50 Bitcoin (BTC) from a seized wallet linked to Thomas White, the operator of Silk Road 2.0. The theft occurred in 2017 when the value of the cryptocurrency was approximately £60,000 ($79,000), but by the time of his conviction, the stolen BTC had appreciated to over £4.4 million ($5.9 million). Chowles, the lead crypto analyst in the investigation, exploited his privileged access to secretly transfer the funds and used Bitcoin Fog, a crypto-mixing service, to obscure the transaction trail [1].

The stolen BTC was transferred through multiple crypto exchanges and converted into cash using services like Cryptopay and Wirex. Between August 2021 and May 2022, Chowles made 279 transactions and withdrew £23,000. By July 2025, the Crown Prosecution Service (CPS) estimated his total illicit gains at £613,147.29 ($824,634.05) [1]. Despite his efforts to disguise the origin of the funds, investigators used blockchain analysis to trace the transactions, uncovering the theft and leading to his arrest and conviction [1].

Chowles was dismissed from the NCA for gross misconduct in July 2025, the same month he was sentenced by Liverpool Crown Court. A specialist prosecutor with the CPS described his actions as an abuse of his position, stating that he believed he could avoid suspicion by devising a complex scheme. Detective Chief Inspector John Black expressed disappointment that someone in law enforcement would engage in the criminality he was tasked with preventing [1].

Following his conviction, authorities seized nearly £470,000 from Chowles' accounts, equivalent to 30 BTC at current values. The CPS is continuing confiscation proceedings to recover any remaining illicit gains. Of the 97 BTC initially seized from Thomas White in 2014, 47 BTC remained and were sold by the NCA in line with court orders, generating approximately £1 million for the state [1].

The case underscores the vulnerabilities within law enforcement when handling cryptocurrency and highlights the growing effectiveness of blockchain analytics in detecting and prosecuting financial crimes. While insiders like Chowles may attempt to exploit their positions, the transparency and traceability of blockchain technology provide a powerful tool for investigators. The incident has also prompted calls for stricter internal controls and enhanced protocols for managing digital assets within law enforcement agencies [1].

Source: [1] How a police officer stole 50 BTC from a seized crypto wallet and got caught (https://cointelegraph.com/explained/how-a-police-officer-stole-50-btc-from-a-seized-crypto-wallet-and-got-caught)