A Former Cop's Big Bitcoin Heist

A former crime-fighting officer, Paul Chowles, has been handed a 5. 5-year prison sentence for a clever but illegal Bitcoin grab. He took 50 Bitcoins, now worth about $6 million, from a seized stash during a dark web investigation. Chowles was a lead analyst, which gave him the perfect opportunity to steal the cryptocurrency. The theft happened in 2017, but it took years for the truth to come out. The Bitcoins were part of a larger haul taken from Thomas White, the founder of Silk Road 2. 0, an illegal online marketplace. At the time, the stolen Bitcoins were worth around $80, 000, a fraction of their current value. Chowles used his access to move the Bitcoin to different accounts and mixers to hide the trail. He then converted some of the money into cash or used debit cards for spending. For a while, the National Crime Agency (NCA) thought Thomas White had accessed the wallet and taken the Bitcoin. But White insisted that only the investigating team had the keys to his wallet. This tip led to a new investigation, and Chowles was eventually arrested in May 2022. Evidence found during the arrest, like an iPhone and notebooks with account details, sealed his fate. Chowles pleaded guilty to theft and other charges. He will now serve 66 months behind bars. This case shows how easy it can be for insiders to exploit their positions, even in law enforcement. It also highlights the challenges of tracking cryptocurrency transactions.