Former National Crime Agency (NCA) officer Paul Chowles has been sentenced to 5.5 years in prison for stealing 50 Bitcoin now valued at £4.4 million during a major dark web investigation.
The 42-year-old accessed cryptocurrency wallets belonging to Thomas White, administrator of the illicit marketplace "Silk Road 2.0," while investigating the case in 2017. At the time, the stolen Bitcoin was worth just £60,000.
How the Heist Unfolded
Chowles exploited his role as an NCA operational lead to steal credentials from seized devices. He transferred the digital currency through "Bitcoin Fog" a mixing service, before converting funds into spendable cash via crypto debit cards.
For years, the NCA blamed White for the missing assets until the whistleblower alerted police after his 2022 prison release. "Only the NCA held my wallet keys," White emphasized.
Blockchain Forensics Crack the Case
Investigators traced 279 transactions to Chowles using Chainalysis blockchain analysis tools. Critical evidence included:
- Notebooks containing White’s crypto credentials in Chowles’ office
- An iPhone linked to exchange searches and transaction accounts
- £144,580 spent through crypto cards on everyday purchases
Sentence and Fallout
Southwark Crown Court imposed consecutive jail terms:
- 30 months for theft under the Theft Act 1968
- 3 years for concealing criminal property (Proceeds of Crime Act 2002)
The NCA dismissed Chowles for gross misconduct. Confiscation proceedings to recover £613,147 are underway, with authorities seizing $1.3M in Bitcoin during his arrest.
Dark Web’s Persistent Shadow
This scandal exposes critical vulnerabilities in law enforcement’s handling of digital evidence. As crypto-related crimes surge, the case underscores blockchain’s paradoxical role: a tool for criminals and an immutable ledger for justice.