Lawman Turned Crypto Thief: NCA Officer Jailed for $5.63M Bitcoin Heist

A former officer of the UK’s National Crime Agency (NCA) has been sentenced to five and a half years in prison after admitting to stealing 50 Bitcoin that had been seized during a major dark web investigation.

From crime fighter to convicted thief

Paul Chowles, 42, was part of a multi-agency operation launched in 2013 alongside the FBI. The investigation targeted Silk Road 1, a notorious dark web marketplace where illegal goods were sold.

Following the closure of the site, a successor platform, Silk Road 2.0, emerged under the control of Thomas White. White was later arrested in 2014 and sentenced to more than five years in prison in 2019 for running the marketplace.

During the investigation, authorities seized 97 Bitcoin from White’s devices.

Chowles, who had access to the cryptocurrency data as part of his role in analyzing evidence, quietly transferred 50 Bitcoin from a so-called “retirement wallet” in May 2017.

To conceal the movement of funds, he split the amount into smaller transactions, used a mixing service known as “Bitcoin Fog,” and redirected the assets to multiple addresses under his control.

Years later, a trail Leads back to Chowles

The theft initially went unnoticed, with investigators suspecting White had somehow accessed the wallet from prison. It wasn’t until Merseyside Police launched a separate probe in 2022 that Chowles’ involvement came to light.

Notebooks found in his office contained credentials for White’s accounts, providing key evidence of his role in the scheme.

At the time of the theft, the stolen Bitcoin was worth around £60,000. As cryptocurrency prices surged, the value of the 50 BTC ballooned to more than $5.63 million.

Prosecutors reported that Chowles spent a significant portion of the funds before his arrest. He pleaded guilty to theft, transferring criminal property, and concealing criminal property.

Detective Chief Inspector John Black, commenting on the case, said the incident “demonstrates that no one is beyond the reach of the law,” adding that Chowles exploited his position to benefit financially while attempting to erase his digital tracks.

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