A former UK law enforcement officer has been sentenced to prison after stealing Bitcoin seized during a major dark web investigation. Paul Chowles, an intelligence officer with the National Crime Agency (NCA), was jailed for five and a half years for siphoning off 50 Bitcoins that had been confiscated in connection with the Silk Road 2.0 case. The theft, which occurred while Chowles was investigating co-founder Thomas White, marked a significant breach of trust within the agency tasked with combating organized cybercrime.
Exploiting a Dark Web Bust for Personal Gain
In 2014, authorities arrested Thomas White for running Silk Road 2.0, a successor to the original Silk Road marketplace, notorious for facilitating illegal drug and weapon sales. During the investigation, the NCA seized 96 BTC from White’s cryptocurrency wallets. Chowles was assigned to process evidence in the case. In May 2017, he accessed one of White’s remaining wallets—referred to in documentation as his “retirement fund”—and quietly transferred 50 Bitcoins into his own control. At the time, the coins were valued at around £60,000, but by 2025, they had appreciated to more than £4.4 million.
Laundering and Spending the Digital Loot
After moving the Bitcoin out of White’s wallet, Chowles took deliberate steps to hide the digital trail. He used a mixing service called Bitcoin Fog to obscure the origin of the coins, making it difficult for investigators to trace the transaction history. Over the next few years, he gradually liquidated the cryptocurrency, using the proceeds to fund a range of personal expenses. Prosecutors said Chowles spent over £600,000 on daily costs, including groceries, nursery fees, and general lifestyle spending.
Discovery Triggered by the Victim Himself
The theft remained hidden for years until White, who had been released from prison, noticed in 2022 that a significant portion of his seized Bitcoin was missing. His complaint prompted a renewed investigation. Since only the NCA had access to the wallet credentials, suspicion quickly turned inward. A joint inquiry by the Merseyside Police and the Crown Prosecution Service uncovered evidence pointing directly to Chowles. Investigators found key clues in his web search history, a crypto exchange account tied to him, and even handwritten notes containing wallet information.
Guilty Plea and Sentencing
Chowles was arrested in May 2022 and later admitted to charges of theft, transferring criminal property, and concealing criminal property. He pleaded guilty in May 2025. Liverpool Crown Court sentenced him to five and a half years in prison, describing his conduct as a gross violation of public trust. Judge David Aubrey stated that Chowles had been “technically adept,” but had used his expertise for personal enrichment, taking advantage of his access to sensitive digital assets and believing he would not be caught.
Institutional Fallout and Broader Lessons
Following his arrest and guilty plea, Chowles was dismissed from the NCA for gross misconduct. The agency acknowledged the damage caused by the breach, emphasizing that no individual, regardless of technical skill or position, is above the law. The case has reignited concerns about the secure handling of digital evidence in criminal investigations—especially as cryptocurrency becomes increasingly prevalent in cybercrime cases. Chowles’ actions not only undermined the credibility of the NCA but also highlighted how internal oversight must evolve to keep pace with digital threats.
