50 BTC stolen from a wallet seized by the National Crime Agency (NCA) in the Silk Road 2.0 case have become the symbol of a sensational internal betrayal of the law.
When they were taken by Paul Chowles in 2017, they were worth just 60,000 pounds, but at the time of discovery, the figure had risen to over 4.4 million.
What really happened: the story of the theft of 50 BTC in the NCA
The National Crime Agency britannica trusted Paul Chowles, a 42-year-old crypto analyst from Bristol tasked with managing and analyzing the digital assets seized from Thomas White, the mind behind Silk Road 2.0. Instead, between May 6 and 7, 2017, Chowles used his privileged access to withdraw 50 BTC from the confiscated “retirement wallet,” part of a historic international operation against dark web marketplaces.
While the Bitcoin were still lowly valued – around 60,000 pounds in total – Chowles thought of securing them by leveraging his skills: he divided the sum into small amounts, used mixing services like Bitcoin Fog, and sent the amounts to crypto exchanges and prepaid cards, attempting to eliminate any trace.
But the value of Bitcoin literally exploded: when the scam fully emerged, the assets were worth over 5.9 million dollars. Chowles conducted 279 transactions between August 2021 and May 2022, spending about 23,000 pounds and converting amounts over 613,000 pounds on crypto-friendly fintech platforms.
How they discovered the culprit: human error vs power of blockchain analysis
For years, the suspects have fallen on Thomas White, a skilled hacker, already convicted after the closure of Silk Road 2.0 in 2014. Investigators considered it plausible that he had miraculously regained access to the private keys of the seized wallet, possibly even from prison.
The truth emerged only when White, once released, reported suspicions about access to the wallets. From there, the Merseyside Police seized Chowles’ devices, finding credentials, browser history, and wallet details directly linked to the theft of the Bitcoin.
Forensic analysis, use of Chainalysis and unusual spending patterns nailed Chowles. Despite the mixers (tools that hide the origins of a cryptocurrency), tracking on the blockchain proved unbeatable: every step, every fraction, every single cent had left indelible traces.
Who is Paul Chowles and why does his case make law enforcement tremble?
Until 2017, Chowles was considered one of the best crypto experts at the NCA, engaged in confiscating and securing digital assets originating from cybercrimes. Precisely thanks to his role, he had access to the encrypted wallets of criminals like White.
The temptation to exploit this position to get rich led him to orchestrate one of the largest internal thefts ever seen in a British financial intelligence agency. The trial, which concluded in March 2025 with Chowles’ confession, highlighted the vulnerability of even anti-crypto crime bodies if not supported by stringent auditing processes.
Alex Johnson (CPS) commented:
“Chowles took advantage of his position to enrich himself, devising a plan that he thought would protect him from any suspicion.”
The chief detective John Black emphasizes the shock:
“It is extremely disappointing that someone appointed to combat crypto crimes may have turned into exactly what they were supposed to stop.”
How the scam worked: conversion circuits, prepaid cards, and bitcoin mixers
After the theft, Chowles spent years slowly laundering the loot. The mechanism was sophisticated:
- Fractioning of Bitcoin through mixers (in particular Bitcoin Fog).
- Sending to secondary wallets and on exchange services, including Cryptopay and Wirex, with direct conversion into pounds on crypto debit cards.
- Cash withdrawals and expenses imitating normal consumption habits.
The reports from the Crown Prosecution Service indicate that almost 80,000 pounds were spent with Wirex alone and that the total value of the assets converted by Chowles approached 824,000 dollars (July 2025).
What are the consequences: historic ruling, asset seizure, and impact on the future of crypto law enforcement
The sentence, issued on July 5, 2025, by the Liverpool Crown Court, is severe: 5 and a half years in prison for the former NCA official, found guilty of theft, money laundering, and concealment. On July 11, the NCA dismissed him for gross misconduct.
Almost 470,000 pounds have already been recovered from Chowles’ assets (equivalent to about 30 current BTC). The confiscation process continues to recover the last stolen shares. Meanwhile, the remaining 47 BTC seized by the same White have been legally sold, generating about 1 million pounds for the State.
The entire case demonstrates a fundamental lesson: tracking on the blockchain is incorruptible even for those who, from the inside, try to circumvent it. And the control over crypto assets in the hands of law enforcement (but also of individual operators) requires continuous audits and transparency.
What happens now? Lesson for everyone: no one is above the law
The “perfect crypto theft” dissolved in the face of the radical transparency of the blockchain. A resounding fall for the NCA, a warning for every operator, and confirmation that Bitcoins, even when passing through crypto mixer services and prepaid cards, remain traceable if authorities invest in forensic analysis and international collaboration.
In an era where Bitcoin is increasingly central in investigations and seizures, no insider is truly safe if they betray public trust. The next generation of legislation and cyber-forensics will need to fill systemic gaps, monitoring both criminals and those who must uphold the law.
The future depends on technologies, audit, and transparency: follow the community and the upcoming rulings to understand where crypto justice is heading.