Ex-NCA Officer Jailed for Stealing 50 BTC During Dark Web Probe

A former officer of the UK’s National Crime Agency (NCA), Paul Chowles, has been sentenced to five years and six months in prison for stealing 50 bitcoins (BTC). The digital assets were originally seized as part of a dark web investigation in 2013. Notably, the coins are now worth over $5.9 million (£4.4 million).

Chowles, 42, from Bristol, was part of a joint operation with the FBI targeting organized crime groups. The probe led to several convictions, including that of Thomas White, a Liverpool man sentenced in 2019 for dark web-related crimes.

Misuse of Access and Attempts to Hide Funds

While at the NCA, Chowles handled the examination of seized devices, including the retrieval of digital data and cryptocurrency. He abused this access by taking 50 out of the 97 BTC recovered from White’s crypto wallet.

Between 6 and 7 May 2017, Chowles attempted to cover his tracks by moving the stolen bitcoin in smaller amounts across several public addresses. He eventually converted the funds into pounds sterling and spent the money using debit cards.

The missing BTC was first discovered by White. He suspected internal foul play, as only NCA personnel had access to the private keys. After his release, Merseyside Police took over case management and were alerted to the theft.

Investigation and Evidence Leading to Conviction

Chowles was part of a follow-up meeting with Merseyside officers where the missing crypto asset was discussed. This triggered a new investigation that ultimately led to his arrest in May 2022.

During the investigation, officers uncovered key evidence, including an iPhone linked to crypto transfers and web searches related to digital currency exchanges. Notebooks found in his office contained usernames, passwords, and financial records tied to White’s accounts. These pieces of evidence further implicated him in the theft.

The NCA cooperated fully with the inquiry and subsequently dismissed Chowles for gross misconduct. He later pleaded guilty to theft, transferring criminal property, and concealing criminal property.

Commenting on the case, Detective Chief Inspector John Black of Merseyside Police expressed disappointment that a law enforcement officer would engage in such conduct. He noted that cryptocurrencies continue to be exploited as a tool for laundering illicit funds.