A Former Cop's Big Bitcoin Heist

Paul Chowles, a former lead analyst in a crime-fighting unit, has been sentenced to 5.5 years in prison for stealing 50 Bitcoins worth approximately $6 million from a seized stash during a dark web investigation.

The Theft and Cover-Up

• 2017 Incident: Chowles exploited his position to steal Bitcoins from a larger haul seized from Thomas White, the founder of Silk Road 2.0.
• Initial Value: The stolen Bitcoins were worth around $80,000 at the time, a fraction of their current value.
• Money Laundering: He moved the Bitcoin through different accounts and mixers to hide the trail, converting some into cash or using debit cards for spending.

The Investigation and Arrest

• Misleading Trail: The National Crime Agency (NCA) initially believed Thomas White had accessed the wallet.
• White's Claim: He insisted only the investigating team had the keys, leading to a new investigation.
• Arrest (May 2022): Evidence, including an iPhone and notebooks with account details, confirmed Chowles' guilt.

Sentencing and Implications

• Plea Deal: Chowles pleaded guilty to theft and other charges.
• Sentence: 66 months in prison.
• Key Takeaways:
• Highlights the risk of insider threats in law enforcement.
• Demonstrates the challenges of tracking cryptocurrency transactions.