A stranger among his own: how a police officer stole 50 BTC and tried to launder them

In the UK, a court has sentenced a former police officer who exploited his official position to steal 50 bitcoins. GetBlock AML Research explains why even a professional couldn’t hide the criminal financial flow that eventually led the former police officer to prison.

Good catch

In 2013, law enforcement shut down Silk Road, a dark web marketplace that used cryptocurrency in its operations. Immediately after the site’s closure, British citizen Thomas White launched his own marketplace called Silk Road 2.0, which operated for less than a year.

In 2014, British security services liquidated Silk Road 2.0, and 97 BTC were seized from its creator. The seizure and subsequent storage of the cryptocurrency were handled by Paul Chowles of the National Crime Agency (NCA).

Going to the dark side

Paul Chowles

Already in 2017, Paul Chowles decided to steal some of the bitcoins seized in the Silk Road 2.0 case. He had physical access to the wallet where the cryptocurrency was stored, so he transferred 50 BTC ($79 000 at the time of the theft) to another address. To embezzle the funds for himself, Chowles split the cryptocurrency into smaller amounts, which he then ran through the Bitcoin Fog crypto mixer.

It took four years before Chowles began exchanging the stolen bitcoins for fiat. It wasn’t until 2021, when the BTC exchange rate rose significantly, that Chowles began using major cryptocurrency platforms (Cryptopay and Wirex) to withdraw funds to his bank cards. By this time, the National Crime Agency had already decided that they would not be able to trace the stolen assets.

As the investigation later revealed, Chowles made 279 transactions and received illegal income of $824 600.

Chowles’ collapse

In early 2022, Silk Road 2.0 organizer Thomas White was released from prison and told law enforcers that only an NCA employee who had physical access to the seized wallet could access the stolen 50 BTC. Law enforcers began checking NCA employees and discovered strange receipts of funds from cryptocurrency platforms into Paul Chowles’ bank accounts.

Chowles became the main suspect in the case of the theft of 50 BTC: his home was searched, personal records and a computer were seized. Evidence was found in Chowles’ browser history that linked him to the stolen cryptocurrency. Then, the path of 50 BTC from the seized wallet to Chowles’ accounts was traced.

Pattern of bitcoin withdrawal to Chowles’ accounts. Visualization: Chainalysis

In July 2025, Paul Chowles was sentenced to five and a half years in prison by Liverpool Crown Court. Immediately after his sentencing, he was dismissed from the National Crime Agency. From the bank accounts of Chowles seized about $620 000, which the ex-police officer received as a result of the sale of cryptocurrency.