A major internal scandal has rocked the UK’s National Crime Agency (NCA) after Paul Chowles, a lead crypto analyst, was convicted for stealing 50 bitcoin from a seized wallet tied to the notorious Silk Road 2.0 marketplace.
The theft and attempted cover-up
In 2017, Chowles used his privileged access to transfer 50 BTC, then worth around £60,000, from a confiscated wallet belonging to Thomas White, the operator of Silk Road 2.0.
To conceal the theft, Chowles utilized bitcoin mixing services to split and obscure the funds, moving them through exchanges and prepaid cards.
As bitcoin’s price climbed, the stolen coins soared in value to over £4.4 million before Chowles was caught.
Wallet access from jail
Investigators initially suspected White might have regained access to the wallet from prison.
However, detailed blockchain analysis pointed to Chowles, leading to his arrest and subsequent five and a half year prison sentence.
Chowles’ case highlights the power of bitcoin’s transparent ledger, which enabled authorities to trace the movements of the stolen coins years after the crime.
Background: Silk Road 2.0 and asset seizure
Silk Road 2.0 was launched in 2013 following the FBI’s closure of the original Silk Road.
British national Thomas White ran the successor marketplace until its 2014 dismantling.
Authorities seized 97 BTC from White and tasked Chowles with managing the digital assets, giving him the opportunity to carry out the theft.
Blockchain forensics expose insider misconduct
Between 2021 and 2022, Chowles attempted to convert the stolen bitcoin into cash using platforms like Cryptopay and Wirex, spending tens of thousands of pounds.
Investigators used Chainalysis tools to follow the flow of funds through mixers and exchanges, eventually uncovering Chowles’ involvement.
The NCA dismissed him for gross misconduct following his guilty plea in March 2025.
Alex Johnson, a Crown Prosecution Service prosecutor, stated:
“Chowles took advantage of his position working on this investigation by lining his own pockets while devising a plan that he believed would ensure that suspicion would never fall upon him.”
Asset recovery and lessons learned
Authorities recovered nearly £470,000 from Chowles’ accounts and continue efforts to reclaim the remaining proceeds.
The case underscores insider risks in digital asset management and the effectiveness of blockchain analytics for law enforcement.
