Former UK Crime Officer Jailed for Stealing 50 Bitcoin From Silk Road 2.0 Case
A former officer of the United Kingdom’s National Crime Agency (NCA) has been sentenced to five and a half years in prison for stealing 50 Bitcoin—currently worth around $5.9 million—that had been seized during an investigation into Silk Road 2.0, a now-defunct darknet marketplace.
Theft From Seized Assets
According to the Crown Prosecution Service (CPS), Paul Chowles, a former operational officer involved in analyzing data linked to Silk Road 2.0 co-founder Thomas White, misappropriated 50 of the 97 Bitcoin confiscated in the probe. At the time of the transfer in May 2017, the stolen BTC was valued at approximately £62,000 (around $79,000).
Chowles pleaded guilty to theft, transferring criminal property, and concealing criminal property in May 2025.
Attempt to Cover Tracks Using Crypto Mixer
The CPS revealed that Chowles attempted to obscure the stolen Bitcoin’s origins by routing the funds through Bitcoin Fog, a crypto mixing service. Forensic analysis by blockchain analytics firm Chainalysis linked the movement of funds to Chowles, who later converted some assets into fiat via exchanges and used crypto-linked debit cards to make personal purchases.
The CPS stated that Chowles used two crypto debit cards to spend approximately £109,425 ($146,580). However, the total financial gain he received is estimated at £613,150 ($821,345). Confiscation proceedings are now underway to recover these funds.
Internal Security Breach Uncovered
Initially, investigators believed that Thomas White had somehow regained access to his Bitcoin wallet. However, White himself alerted authorities, asserting that only the NCA had access to the wallet’s private keys and insisting that an internal actor was responsible.
This prompted a formal investigation by Merseyside Police, who collaborated with the NCA to identify the breach. Chowles was present at one of the early case review meetings and later emerged as the prime suspect.
Evidence Found in Personal Notes
A key breakthrough came when police discovered a mobile phone linked to Chowles that had been used to manage crypto transfers. They also uncovered notebooks in his office containing sensitive login details and notes related to White’s cryptocurrency accounts.
Alex Johnson, a specialist prosecutor from the CPS Special Crime Division, stated:
“Within the NCA, Paul Chowles was regarded as someone who was competent, technically minded, and very aware of the dark web and cryptocurrencies. He took advantage of his position by lining his own pockets while devising a plan that he believed would shield him from suspicion.”
Silk Road 2.0 Background
Silk Road 2.0 was created in November 2013, shortly after the FBI shut down the original Silk Road and arrested its founder, Ross Ulbricht. The successor platform operated for roughly a year before it was dismantled by U.S. authorities.
Chowles’ conviction adds to a growing number of law enforcement breaches involving seized digital assets and underscores the challenges of internal oversight in high-stakes cybercrime cases.
