Ex-Cop Jailed for Stealing Bitcoin from Dark Web Crime Network
Former NCA Officer Sentenced for Bitcoin Theft
Officer Misuses Position to Steal Cryptocurrency
A former officer of the National Crime Agency (NCA) has been sentenced to five and a half years in prison for embezzling nearly £60,000 in Bitcoin.
Details of the Crime
Paul Chowles, aged 42 and based in Bristol, exploited the dark web to transfer Bitcoin that belonged to a drug trafficker into his personal accounts. Following the theft, the value of Bitcoin surged, leading the Crown Prosecution Service (CPS) to estimate that Chowles spent a total of £144,580 before his arrest. At the time of his sentencing, the 50 Bitcoin he had stolen was valued at over £4.4 million.
Chowles faced sentencing at Liverpool Crown Court after admitting to charges of theft, transferring criminal property, and concealing criminal property.
Background of the Investigation
In 2013, Chowles was involved in an NCA operation targeting organized crime networks that were selling illegal items on the dark web platform Silk Road 1. This investigation resulted in the arrest of Thomas White, who had set up a backup site shortly after the FBI shut down the original Silk Road. White received a 64-month prison sentence in April 2019.
After seizing 97 Bitcoin from White, authorities discovered that 50 Bitcoin had been withdrawn from the digital wallet. Initially, the NCA suspected that White had accessed the wallet while in custody, a claim he denied.
Arrest and Evidence
An investigation by Merseyside Police into the stolen Bitcoin led to Chowles’ arrest in May 2022. It was revealed that he had divided the stolen Bitcoin into smaller amounts and transferred them to various bank accounts to obscure the money trail. During the investigation, several notebooks were found in Chowles’ office, containing usernames, passwords, and notes related to White’s cryptocurrency accounts.
Covering His Tracks
Detective Chief Inspector John Black from Merseyside Police’s Force Intelligence Bureau commented on the case, emphasizing that it serves as a clear reminder that no one is above the law. He expressed disappointment that someone in law enforcement could engage in the very criminal activities they are meant to combat. Black stated, “Chowles took advantage of his role in this investigation to enrich himself while attempting to conceal his actions. He was mistaken in thinking he could evade justice.”
