It sounds like something out of a Netflix (NFLX) drama, a trusted crypto analyst working for the UK’s National Crime Agency quietly siphoning off Bitcoin from a seized wallet tied to one of the most infamous dark web operators. Although this sounds like fiction, it wasn’t. It was Paul Chowles. And it took years, a blockchain trail, and the help of forensic tech to finally catch him.
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Back in 2017, Chowles had access to a seized crypto wallet linked to Thomas White, the British mastermind behind Silk Road 2.0. At the time, the 50 Bitcoin he stole was worth around £60,000. Fast forward a few years, and that same stash had exploded in value to more than £4.4 million (around $5.85 million). And Chowles, who had been put in charge of protecting the funds, decided to help himself.
This Was a Plan Built on Privilege
Chowles wasn’t an outsider who broke in, he was the guy the system trusted. His job was to extract and manage digital assets for the NCA, and he used that privileged role to move Bitcoin from White’s “retirement wallet” into his own hands.
To hide what he was doing, Chowles broke the BTC into smaller amounts and used crypto-mixing services like Bitcoin Fog to mask the origin of the funds. From there, he funneled them through platforms like Cryptopay and Wirex, converting Bitcoin into British pounds and spending them through prepaid cards linked to the accounts. It was slow and deliberate, and for a while, it worked.
They Thought a Seasoned Hacker Stole the Funds
At first, investigators thought White, a seasoned hacker himself, had somehow managed to remotely access his funds from prison. The theory made sense until the blockchain told a different story. A deeper forensic look revealed the transactions had been made long after White lost access, and someone inside the agency had to be responsible.
By early 2022, the trail led directly to Chowles. Police seized his phone, notes, and access logs, which revealed wallet addresses and transaction histories tied to the missing funds. And although he had tried to cover his tracks using mixing services and crypto platforms, the transaction patterns eventually gave him away. The transparency of blockchain was working exactly as intended.
Chowles Turns Stolen Bitcoin into Spending Money
Chowles didn’t just steal the Bitcoin and leave it untouched. Between 2021 and 2022, he cashed out thousands of pounds across multiple crypto platforms. Records showed nearly 280 transactions, spending close to £80,000 on everything from withdrawals to card payments. Investigators say he walked away with over £600,000 in profit. But the audacity of his scheme, stealing from seized criminal funds while leading the investigation himself, is what shocked most people.
In March 2025, Chowles finally pleaded guilty to theft and money laundering. A few months later, he was sentenced to five and a half years in prison and fired for gross misconduct. The case left the NCA red-faced and raised uncomfortable questions about how crypto assets are managed by law enforcement.
Justice Was Served
Since the conviction, authorities have managed to seize and recover nearly £470,000 from Chowles’ accounts and assets. That’s roughly equivalent to 30 of the stolen BTC at current prices. Another 47 Bitcoin, which remained untouched in White’s wallet, was sold by the NCA for around £1 million, as part of a court order.
The case also triggered a wider conversation about how governments deal with digital assets. Chowles might have thought that crypto anonymity and his insider status would protect him. But the blockchain, paired with years of patience and forensic work, ultimately proved stronger than his cover-up.
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