How did the police officer find yourself turning into a thief?
In a significant breach of belief inside UK regulation 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 Highway 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 providers to separate the stolen Bitcoin into smaller quantities, transferring them by means of 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 perpetrator. His arrest, conviction and five-and-a-half-year sentence show that blockchain’s traceability can expose even insiders, proving nobody is above the regulation.
Background: Silk Highway 2.0, Thomas White and the NCA
In 2013, the US Federal Bureau of Investigation closed the illicit on-line market often known as Silk Highway, which facilitated the commerce of unlawful medication and items on the darkish internet. Shortly thereafter, Silk Highway 2.0 was launched by British nationwide Thomas White, shortly gaining recognition.
This successor web site was additionally dismantled in 2014 by means of a collaborative effort between UK authorities and the FBI. In the course of the investigation, authorities confiscated 97 BTC from White. These funds have 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 important in tracing, securing and documenting these digital belongings for regulation enforcement.
Chowles’ position in White’s investigation gave him entry and the chance to commit one of many NCA’s most important 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 one of the vital 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 will in the end 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 break up the Bitcoin into smaller quantities and funneled them by means of 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 providers enabled Chowles to transform BTC into British kilos, which he accessed by means of 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 together with his cautious efforts to disguise the transactions, mirrored his perception that he may 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 usually public sale seized Bitcoin. The US Marshals Service has bought tens of hundreds of BTC since 2014, with some heaps snapped up by early crypto adopters like Tim Draper, turning authorities asset restoration into sudden alternatives for buyers.
Investigation and unraveling of Chowles’ scheme
In early 2022, after his launch, White knowledgeable authorities that solely an NCA insider may have accessed the personal keys to his seized Bitcoin pockets, prompting a Merseyside Police investigation into Chowles.
Investigators seized Chowles’ telephone and notebooks, uncovering credentials, browser historical past and pockets particulars that instantly linked him to the theft of fifty BTC in 2017. Utilizing Chainalysis analytics, authorities traced the stolen funds by means of Bitcoin Fog, a crypto-mixing service, to varied exchanges, figuring out the cash path regardless of Chowles’ efforts to obscure it.
The mixture of digital forensics and blockchain evaluation uncovered his scheme. Chowles’ meticulous makes an attempt to evade detection unraveled. After almost three years of authorized proceedings, Chowles pleaded responsible in March 2025 to theft, transferring legal property and concealing legal property. His actions highlighted the intense problem of insider misconduct inside regulation enforcement, given his position as a trusted NCA crypto analyst.
In July 2025, Liverpool Crown Court docket 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 implementing the regulation face its full penalties after they betray public belief.
Alex Johnson, a specialist prosecutor with the CPS, acknowledged 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, stated, “It will likely be extraordinarily disappointing to everybody that somebody concerned in regulation enforcement may 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 almost 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 Highway 2.0 operator Thomas White. Of the 97 BTC initially seized from White, 47 BTC remained in custody and was bought by the NCA in keeping with the courtroom order, producing roughly 1 million kilos.
These recoveries show the state’s rising capacity to hint, seize and convert digital belongings into funds, even after they have been laundered or tied to complicated legal schemes, guaranteeing that neither criminals nor corrupt insiders can escape from the results of their actions.
Do you know? Crypto seizures typically contain cross-border teamwork. Businesses 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 lots of of thousands and thousands in crypto have been frozen and confiscated.
Key classes from Chowles’ crypto theft
The case of Paul Chowles serves as a reminder that even regulation enforcement insiders will 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 here 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 almost 5 years later, demonstrating the efficacy of blockchain analytics.
- Insider dangers: Chowles’ entry to personal keys and forensic instruments reveals how trusted officers can turn 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 regulation enforcement.
