Former UK Officer Sentenced for Bitcoin Theft in Silk Road 2.0 Investigation
A former officer of the UK’s National Crime Agency (NCA), Paul Chowles, has been sentenced to five-and-a-half years in prison for stealing 50 Bitcoin during an investigation into the online black market Silk Road 2.0. The Bitcoin, now valued at approximately $5.9 million, was seized from Silk Road 2.0 co-founder Thomas White. Chowles pleaded guilty to charges including theft, transferring criminal property, and concealing criminal property.
Key Facts About the Case
- Chowles stole 50 Bitcoin, worth $5.9 million today, during the Silk Road 2.0 probe.
- He used Bitcoin Fog, a crypto mixing service, to obscure the stolen funds.
- Chainalysis tools helped trace the flow of the stolen Bitcoin.
- Chowles spent part of the funds using crypto-enabled debit cards.
How the Theft Was Discovered
Thomas White alerted authorities after noticing the Bitcoin was moved. He suspected an insider because only the NCA had access to his wallet. Investigators found notes in Chowles’ office containing details of White’s cryptocurrency accounts, linking him to the theft.
Legal and Financial Consequences
The Crown Prosecution Service is pursuing confiscation proceedings against Chowles. He benefited financially by approximately £613,150 ($821,345).
