How did the police officer find yourself changing into a thief?
In a serious breach of belief inside UK legislation enforcement, Paul Chowles, a Nationwide Crime Company (NCA) officer, stole 50 Bitcoin (BTC) from a seized pockets related to Thomas White, an operator of Silk Road 2.0.
The theft occurred in 2017 when the cryptocurrency was valued at a complete of roughly 60,000 British kilos (round $79,000). By the point Chowles was caught, the crypto’s worth had surged to over 4.4 million kilos (round $5.9 million). The 42-year-old officer from Bristol used the darkish internet and crypto-mixing services to separate the stolen Bitcoin into smaller quantities, transferring them by crypto exchanges and pay as you go playing cards to hide their supply.
Initially, investigators suspected White had someway regained entry to his funds whereas in custody, however detailed blockchain evaluation revealed Chowles because the offender. His arrest, conviction and five-and-a-half-year sentence display that blockchain’s traceability can expose even insiders, proving nobody is above the legislation.
Background: Silk Street 2.0, Thomas White and the NCA
In 2013, the US Federal Bureau of Investigation closed the illicit on-line market often called Silk Street, which facilitated the commerce of unlawful medication and items on the darkish internet. Shortly thereafter, Silk Street 2.0 was launched by British nationwide Thomas White, rapidly gaining reputation.
This successor website was additionally dismantled in 2014 by a collaborative effort between UK authorities and the FBI. In the course of the investigation, authorities confiscated 97 BTC from White. These funds had been positioned in a “retirement pockets” and designated for seizure as a part of his sentence.
Paul Chowles, a 42-year-old officer from Bristol, served because the lead crypto analyst for the NCA and was liable for extracting and managing White’s cryptocurrency. Chowles’ experience was very important in tracing, securing and documenting these digital belongings for legislation enforcement.
Chowles’ function in White’s investigation gave him entry and the chance to commit one of many NCA’s most vital inside thefts.
Do you know? In 2021, US authorities seized over 94,000 BTC linked to the 2016 Bitfinex hack, value greater than $3.6 billion on the time. It marked probably the most important monetary seizures in US historical past.
How did Chowles commit the crypto theft?
Between Might 6 and seven, 2017, Chowles dedicated a theft that might finally get him dismissed from his job and take him to jail.
Because the lead crypto analyst within the Thomas White investigation, Chowles used his privileged entry to secretly switch 50 BTC, valued at roughly 60,000 kilos, from White’s seized “retirement pockets.” To cover the supply of the stolen funds, he cut up the Bitcoin into smaller quantities and funneled them by Bitcoin Fog, a crypto-mixing service designed to obscure transaction trails.
Initially, investigators suspected White, a talented hacker, might need accessed his confiscated belongings from jail. For years, the theft remained unsolved, and by late 2021, the NCA thought-about the 50 BTC untraceable. Chowles’ fastidiously deliberate deception appeared profitable till blockchain evaluation later revealed his fraud and introduced his actions to gentle.
After stealing funds from White’s seized pockets, Chowles quietly labored to transform the cryptocurrency into money. As Bitcoin’s worth surged between August 2021 and Might 2022, he started exchanging parts of the funds utilizing crypto-friendly platforms like Cryptopay and Wirex.
These companies enabled Chowles to transform BTC into British kilos, which he accessed by linked debit playing cards. Throughout this era, Chowles carried out 279 transactions, spending roughly 23,000 kilos between Aug. 26, 2021, and Might 20, 2022. Between Aug. 30, 2021, and Feb. 22, 2022, Chowles transformed and made 5 withdrawals totalling 6,232 kilos.
In line with the Crown Prosecution Service (CPS), Chowles, between Aug. 27, 2021, and July 14, 2021, used the Wirex account and debit card to spend the sum of 79,884.77 kilos (valued at $107,438.62 on July 25, 2025). The CPS estimated his good points to be 613,147.29 kilos (valued at $824,634.05 on July 25, 2025).
Chowles’ use of mainstream monetary platforms, mixed along with his cautious efforts to disguise the transactions, mirrored his perception that he might keep away from detection. Nevertheless, the amount and sample of his spending supplied key proof that allowed investigators to hint the stolen funds.
Do you know? Governments typically public sale seized Bitcoin. The US Marshals Service has bought tens of hundreds of BTC since 2014, with some tons snapped up by early crypto adopters like Tim Draper, turning authorities asset restoration into surprising alternatives for buyers.
Investigation and unraveling of Chowles’ scheme
In early 2022, after his launch, White knowledgeable authorities that solely an NCA insider might have accessed the private keys to his seized Bitcoin pockets, prompting a Merseyside Police investigation into Chowles.
Investigators seized Chowles’ cellphone and notebooks, uncovering credentials, browser historical past and pockets particulars that immediately linked him to the theft of fifty BTC in 2017. Utilizing Chainalysis analytics, authorities traced the stolen funds by Bitcoin Fog, a crypto-mixing service, to varied exchanges, figuring out the cash path regardless of Chowles’ efforts to obscure it.
The mix of digital forensics and blockchain evaluation uncovered his scheme. Chowles’ meticulous makes an attempt to evade detection unraveled. After practically three years of authorized proceedings, Chowles pleaded responsible in March 2025 to theft, transferring prison property and concealing prison property. His actions highlighted the intense subject of insider misconduct inside legislation enforcement, given his function as a trusted NCA crypto analyst.
In July 2025, Liverpool Crown Courtroom sentenced the 42-year-old to 5 and a half years in jail. On July 11, 2025, the NCA dismissed Chowles for gross misconduct. The sentencing served as each a punishment and a reminder that even these liable for imposing the legislation face its full penalties once they betray public belief.
Alex Johnson, a specialist prosecutor with the CPS, stated that Chowles “took benefit of his place engaged on this investigation by lining his personal pockets whereas devising a plan that he believed would be certain that suspicion would by no means fall upon him.”
Detective Chief Inspector John Black, who investigated Chowles with assist from the NCA, mentioned, “It will likely be extraordinarily disappointing to everybody that somebody concerned in legislation enforcement might contain themselves within the very criminality they’re tasked with investigating and stopping.”
Aftermath and asset restoration from Chowles
After Chowles’ conviction, authorities labored to get well the stolen cryptocurrency. They seized practically 470,000 kilos from Chowles’ accounts and belongings, equal to 30 BTC at present values.
The CPS initiated ongoing confiscation proceedings to get well any remaining illicit good points for the state. The NCA additionally addressed the belongings linked to Silk Street 2.0 operator Thomas White. Of the 97 BTC initially seized from White, 47 BTC remained in custody and was bought by the NCA consistent with the court docket order, producing roughly 1 million kilos.
These recoveries display the state’s rising skill to hint, seize and convert digital belongings into funds, even once they have been laundered or tied to advanced prison schemes, making certain that neither criminals nor corrupt insiders can escape from the results of their actions.
Do you know? Crypto seizures usually contain cross-border teamwork. Companies like Europol, Interpol and the FBI share blockchain intelligence to get well illicit funds. These joint efforts have led to coordinated takedowns of darknet markets like Hydra, the place tons of of thousands and thousands in crypto had been frozen and confiscated.
Key classes from Chowles’ crypto theft
The case of Paul Chowles serves as a reminder that even legislation enforcement insiders might be tempted to misuse the belongings they’re entrusted to guard. Nevertheless, it additionally highlights how blockchain’s transparency and superior investigative instruments can uncover hidden crimes, even years after they happen.
Listed below are key classes from Chowles’ case and its broader implications:
- Blockchain’s traceability: Regardless of Chowles’ efforts to hide the theft utilizing Bitcoin Fog, Chainalysis traced the stolen funds practically 5 years later, demonstrating the efficacy of blockchain analytics.
- Insider dangers: Chowles’ entry to non-public keys and forensic instruments reveals how trusted officers can develop into dangers, resulting in calls for for stricter inside safeguards.
- Authorized and regulatory impacts: The case emphasizes the necessity for improved protocols for dealing with cryptocurrency belongings, leading to enhanced seizure and restoration processes and elevated oversight inside legislation enforcement.
