Bitcoin News Today: UK Officer Sentenced for Stealing 50 BTC from Seized Dark Web Wallet

A UK National Crime Agency (NCA) officer, Paul Chowles, has been convicted of stealing 50 Bitcoin (BTC) from a seized wallet belonging to Thomas White, the operator of Silk Road 2.0, a dark web marketplace closed in 2014. The theft, which took place in 2017, initially went undetected for years as Chowles used crypto-mixing services and digital platforms to obscure the source of the funds. By the time the theft was uncovered, the value of the stolen BTC had risen from around £60,000 to over £4.4 million. In 2025, Chowles was sentenced to five and a half years in prison and dismissed from his role as a crypto analyst. His arrest followed an investigation triggered by White’s claims that only an NCA insider could have accessed the wallet, leading to the discovery of Chowles’ private keys and transaction history on his devices. The case has underscored the potential for insider threats in digital asset management and the critical role of blockchain analytics in uncovering sophisticated financial crimes [1].

Chowles’ scheme involved splitting the stolen BTC into smaller amounts and using services like Bitcoin Fog to anonymize the transfers. He then converted the funds into cash using crypto-friendly platforms such as Cryptopay and Wirex, spending approximately £23,000 between 2021 and 2022. Over the course of nearly five years, he made 279 transactions, with one account showing £79,884 in withdrawals by July 2025. Despite his efforts to remain undetected, the frequency and patterns of his spending provided investigators with key clues. The NCA, in collaboration with Merseyside Police and blockchain analytics firm Chainalysis, traced the movement of the stolen funds and linked them back to Chowles. The case highlights the growing capabilities of law enforcement in tracking digital currencies, even when laundered through complex methods [1].

Following his conviction, authorities have taken steps to recover the stolen assets. Approximately £470,000 has been seized from Chowles’ accounts, equivalent to the value of 30 BTC at current prices. The Crown Prosecution Service is continuing to pursue the confiscation of remaining illicit gains. Meanwhile, the NCA sold 47 of the 97 BTC originally seized from White, generating around £1 million for the state. These recoveries emphasize the increasing effectiveness of digital asset seizure and conversion, even when the funds have been tied to dark web operations or laundered through multiple channels [1].

The case has broader implications for the regulation and oversight of cryptocurrency within law enforcement. It raises concerns about the risks posed by insiders with privileged access to digital assets and underscores the need for stronger internal controls. Analysts have pointed out that while blockchain technology provides a level of traceability, the case also highlights the vulnerabilities that exist when trust is misused. As cryptocurrency becomes a more common tool in financial crime, the demand for advanced investigative capabilities and stricter safeguards within agencies is expected to grow. The conviction of Chowles, a crypto expert tasked with protecting digital assets, serves as a stark reminder that no one, regardless of position, is immune to accountability [1].

[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?utm_source=rss_feed&utm_medium=rss&utm_campaign=rss_partner_inbound)