How did the police officer end up becoming a thief?
In a major breach of trust within UK law enforcement, Paul Chowles, a National Crime Agency (NCA) officer, stole 50 Bitcoin (BTC) from a seized wallet connected to Thomas White, an operator of Silk Road 2.0.
The theft occurred in 2017 when the cryptocurrency was valued at a total of approximately 60,000 British pounds (around $79,000). By the time Chowles was caught, the crypto’s value had surged to over 4.4 million pounds (around $5.9 million). The 42-year-old officer from Bristol used the dark web and crypto-mixing services to split the stolen Bitcoin into smaller amounts, transferring them through crypto exchanges and prepaid cards to conceal their source.
Initially, investigators suspected White had somehow regained access to his funds while in custody, but detailed blockchain analysis revealed Chowles as the culprit. His arrest, conviction and five-and-a-half-year sentence demonstrate that blockchain’s traceability can expose even insiders, proving no one is above the law.
Background: Silk Road 2.0, Thomas White and the NCA
In 2013, the US Federal Bureau of Investigation closed the illicit online marketplace known as Silk Road, which facilitated the trade of illegal drugs and goods on the dark web. Shortly thereafter, Silk Road 2.0 was launched by British national Thomas White, quickly gaining popularity.
This successor site was also dismantled in 2014 through a collaborative effort between UK authorities and the FBI. During the investigation, authorities confiscated 97 BTC from White. These funds were located in a “retirement wallet” and designated for seizure as part of his sentence.
Paul Chowles, a 42-year-old officer from Bristol, served as the lead crypto analyst for the NCA and was responsible for extracting and managing White’s cryptocurrency. Chowles’ expertise was vital in tracing, securing and documenting these digital assets for law enforcement.
Chowles’ role in White’s investigation gave him access and the opportunity to commit one of the NCA’s most significant internal thefts.
Did you know? In 2021, US authorities seized over 94,000 BTC linked to the 2016 Bitfinex hack, worth more than $3.6 billion at the time. It marked one of the most significant financial seizures in US history.
How did Chowles commit the crypto theft?
Between May 6 and 7, 2017, Chowles committed a theft that would ultimately get him dismissed from his job and take him to prison.
As the lead crypto analyst in the Thomas White investigation, Chowles used his privileged access to secretly transfer 50 BTC, valued at approximately 60,000 pounds, from White’s seized “retirement wallet.” To hide the source of the stolen funds, he split the Bitcoin into smaller amounts and funneled them through Bitcoin Fog, a crypto-mixing service designed to obscure transaction trails.
Initially, investigators suspected White, a skilled hacker, might have accessed his confiscated assets from prison. For years, the theft remained unsolved, and by late 2021, the NCA considered the 50 BTC untraceable. Chowles’ carefully planned deception appeared successful until blockchain analysis later revealed his fraud and brought his actions to light.
After stealing funds from White’s seized wallet, Chowles quietly worked to convert the cryptocurrency into cash. As Bitcoin’s value surged between August 2021 and May 2022, he began exchanging portions of the funds using crypto-friendly platforms like Cryptopay and Wirex.
These services enabled Chowles to convert BTC into British pounds, which he accessed through linked debit cards. During this period, Chowles carried out 279 transactions, spending approximately 23,000 pounds between Aug. 26, 2021, and May 20, 2022. Between Aug. 30, 2021, and Feb. 22, 2022, Chowles converted and made five withdrawals totalling 6,232 pounds.
According to 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 pounds (valued at $107,438.62 on July 25, 2025). The CPS estimated his gains to be 613,147.29 pounds (valued at $824,634.05 on July 25, 2025).
Chowles’ use of mainstream financial platforms, combined with his careful efforts to disguise the transactions, reflected his belief that he could avoid detection. However, the volume and pattern of his spending provided key evidence that allowed investigators to trace the stolen funds.
Did you know? Governments generally auction seized Bitcoin. The US Marshals Service has sold tens of thousands of BTC since 2014, with some lots snapped up by early crypto adopters like Tim Draper, turning government asset recovery into unexpected opportunities for investors.
Investigation and unraveling of Chowles’ scheme
In early 2022, after his release, White informed authorities that only an NCA insider could have accessed the private keys to his seized Bitcoin wallet, prompting a Merseyside Police investigation into Chowles.
Investigators seized Chowles’ phone and notebooks, uncovering credentials, browser history and wallet details that directly linked him to the theft of 50 BTC in 2017. Using Chainalysis analytics, authorities traced the stolen funds through Bitcoin Fog, a crypto-mixing service, to various exchanges, identifying the money trail despite Chowles’ efforts to obscure it.
The combination of digital forensics and blockchain analysis exposed his scheme. Chowles’ meticulous attempts to evade detection unraveled. After nearly three years of legal proceedings, Chowles pleaded guilty in March 2025 to theft, transferring criminal property and concealing criminal property. His actions highlighted the serious issue of insider misconduct within law enforcement, given his role as a trusted NCA crypto analyst.
In July 2025, Liverpool Crown Court sentenced the 42-year-old to five and a half years in prison. On July 11, 2025, the NCA dismissed Chowles for gross misconduct. The sentencing served as both a punishment and a reminder that even those responsible for enforcing the law face its full consequences when they betray public trust.
Alex Johnson, a specialist prosecutor with the CPS, stated that Chowles “took advantage of his position working on this investigation by lining his own pockets while devising a plan that he believed would ensure that suspicion would never fall upon him.”
Detective Chief Inspector John Black, who investigated Chowles with help from the NCA, said, “It will be extremely disappointing to everyone that someone involved in law enforcement could involve themselves in the very criminality they are tasked with investigating and preventing.”
Aftermath and asset recovery from Chowles
After Chowles’ conviction, authorities worked to recover the stolen cryptocurrency. They seized nearly 470,000 pounds from Chowles’ accounts and assets, equivalent to 30 BTC at current values.
The CPS initiated ongoing confiscation proceedings to recover any remaining illicit gains for the state. The NCA also addressed the assets linked to Silk Road 2.0 operator Thomas White. Of the 97 BTC initially seized from White, 47 BTC remained in custody and was sold by the NCA in line with the court order, generating approximately 1 million pounds.
These recoveries demonstrate the state’s increasing ability to trace, seize and convert digital assets into funds, even when they have been laundered or tied to complex criminal schemes, ensuring that neither criminals nor corrupt insiders can escape from the result of their actions.
Did you know? Crypto seizures often involve cross-border teamwork. Agencies like Europol, Interpol and the FBI share blockchain intelligence to recover illicit funds. These joint efforts have led to coordinated takedowns of darknet markets like Hydra, where hundreds of millions in crypto were frozen and confiscated.
Key lessons from Chowles’ crypto theft
The case of Paul Chowles serves as a reminder that even law enforcement insiders can be tempted to misuse the assets they are entrusted to protect. However, it also highlights how blockchain’s transparency and advanced investigative tools can uncover hidden crimes, even years after they occur.
Here are key lessons from Chowles’ case and its broader implications:
- Blockchain’s traceability: Despite Chowles’ efforts to conceal the theft using Bitcoin Fog, Chainalysis traced the stolen funds nearly five years later, demonstrating the efficacy of blockchain analytics.
- Insider risks: Chowles’ access to private keys and forensic tools reveals how trusted officers can become risks, leading to demands for stricter internal safeguards.
- Legal and regulatory impacts: The case emphasizes the need for improved protocols for handling cryptocurrency assets, resulting in enhanced seizure and recovery processes and increased oversight within law enforcement.
