Former UK officer steals $5.9 million in Bitcoin, sentenced to 5 and a half years.
The UK Royal Prosecutor's Office announced on Wednesday (7/16) that former National Crime Agency (NCA) officer Paul Chowles was sentenced to five and a half years in prison for stealing 50 Bitcoins. These Bitcoins were seized from the assets of the now-defunct online black market 'Silk Road 2.0,' currently valued at about $5.9 million. Chowles was part of the team investigating Silk Road and Silk Road 2.0 and pleaded guilty in May this year to charges of theft, transferring criminal property, and concealing criminal property.
The NCA seized 97 Bitcoins when they arrested Silk Road 2.0 co-founder Thomas White in November 2014, but 50 Bitcoins (worth about $79,000 at the time) were transferred from his wallet to another address in May 2017. These Bitcoins were subsequently processed through the cryptocurrency mixing service Bitcoin Fog, apparently to obscure their origin. The tools of the blockchain analysis company Chainalysis helped identify that part of the funds were converted into cash or deposited into debit cards that support cryptocurrency.
Source: Chainalysis The tools of Chainalysis illustrate the flow of the stolen 50 BTC at various stages.
Victim reports exposed the insider, revealing detailed criminal evidence.
The National Crime Agency investigation team initially believed that White had used his skills to access the wallet and transfer the Bitcoins. However, White indicated to police that it was others who moved the Bitcoins, asserting that it must have been an insider from the NCA, as only that agency possessed the keys to his crypto wallet. Subsequently, police launched an investigation into the stolen Bitcoins, ultimately arresting Chowles.
Police found a mobile phone linking Chowles to the accounts used to transfer Bitcoin, which also had internet search records for cryptocurrency exchanges. More shockingly, police discovered several notebooks in Chowles's office that recorded usernames, passwords, and related statements for White's cryptocurrency accounts.
Illegal profits exceed $820,000, and authorities will recover the assets.
Chowles used two debit cards that support cryptocurrency, spending a total of approximately £109,425 ($146,580), but the Royal Prosecutor's Office calculated that he gained economic benefits of about £613,150 ($821,345) from it. This figure reflects the value difference of Bitcoin at the time of theft and during the investigation period.
Alex Johnson, a specialized prosecutor in the Royal Prosecutor's Office, stated: 'Within the NCA, Paul Chowles was seen as a capable, tech-savvy individual who had a deep understanding of the dark web and cryptocurrency. He exploited his position in this investigation for personal gain while devising a plan he believed would never raise suspicion towards him.'
The Royal Prosecutor's Office stated that it will initiate a forfeiture process against Chowles in an attempt to recover his illegally obtained assets. This case highlights the importance of stricter internal control mechanisms within law enforcement when dealing with high-value digital assets.
This content was generated by Crypto Agent compiling various information, reviewed and edited by (Crypto City), and is still in training, which may contain logical biases or information errors. The content is for reference only and should not be taken as investment advice.
'Is the temptation of Bitcoin too great? Former UK officer steals 50 BTC, targeting Silk Road assets.' This article was first published in 'Crypto City.'
