Paul Chowles, a former National Crime Agency (NCA) officer, has been sentenced to five and a half years in prison for stealing and concealing a cryptocurrency stash worth over £4.4 million. The digital assets were originally seized as criminal property during a probe into dark web criminal activity.
Chowles, 42, was part of a UK-US joint investigation targeting organised crime networks selling illegal goods on the notorious Silk Road 1 marketplace back in 2013. The operation, coordinated with the FBI, led to multiple convictions for drug offences.
In 2014, a second phase identified Thomas White, who launched Silk Road 2.0 shortly after the FBI shut down the original site. White was sentenced to 64 months in prison in 2019. Chowles played a key role in extracting cryptocurrency and data from White’s seized devices.
Between May 6 and 7, 2017, 50 of the 97 Bitcoin seized were transferred from White’s “retirement wallet” to public addresses, then routed through Bitcoin Fog—a cryptocurrency mixer used to launder money and obscure its origin.
Chowles converted much of the stolen Bitcoin into pounds, using Cryptopay and Wirex debit cards linked to accounts he created. He made hundreds of transactions, spending tens of thousands of pounds between 2021 and 2022. Overall, Chowles benefited financially to the tune of over £613,000.
At Liverpool Crown Court on May 23, Chowles pleaded guilty to theft, transferring criminal property, and concealing criminal property. The case was investigated by Merseyside Police.
Alex Johnson, Specialist Prosecutor at the Crown Prosecution Service, said Chowles abused his trusted position to enrich himself, deliberately attempting to cover his tracks by using cryptocurrency mixers.
Initially, the NCA believed White had moved the Bitcoin, but after his conviction, it became clear the coins were stolen internally. White suspected an insider because only NCA personnel had access to the wallet’s private keys.
Detective Chief Inspector John Black of Merseyside Police condemned Chowles’s actions, emphasizing that law enforcement officers are not above the law. He praised the specialist officers who traced the stolen funds and ensured justice was served.
This case highlights ongoing challenges law enforcement faces with cryptocurrency laundering but also reinforces that corruption within their ranks will be uncovered and punished.
