Background

Paul Chowles, a 44-year-old former officer with the National Crime Agency (NCA), has been ordered to repay over £1.8 million (approximately $2.4 million) after being found guilty of theft related to a high-profile investigation involving Silk Road 2.0.

Details of the Case

Chowles unlawfully appropriated 50 Bitcoin from a total of 97 Bitcoin that had been seized from Thomas White, who was convicted as the administrator of Silk Road 2.0, a notorious dark web marketplace. At the time of the theft in 2017, the Bitcoin had a value of about £60,000 ($79,000).

Investigation and Discovery

In late 2021, the investigation drew renewed attention when White argued that someone within the NCA must have facilitated the Bitcoin’s disappearance. Initially, investigators believed White might have moved the stolen coins himself due to his technical expertise.

However, a closer examination revealed that the missing coins were likely untraceable. Following White’s conviction, the court had placed a confiscation order for £1,560,506. The NCA sold remaining Bitcoin to satisfy part of this order, although £1,066,956 remained outstanding.

Chowles’ Actions and Consequences

During a sensitive period for the investigation, Chowles transferred 50 Bitcoin from White’s “retirement wallet” to an address he controlled between May 6 and May 7, 2017. He further attempted to obscure the trail by breaking down the amounts and using a Bitcoin mixing service known as Bitcoin Fog.

The criminal activity did not come to light until 2022, when Chowles was arrested after a meeting between Merseyside Police and NCA officials addressing White’s allegations. Law enforcement found evidence, including an iPhone linked to the Bitcoin transactions and notebooks containing relevant information about White’s accounts.

Legal Outcomes and Sentencing

Following a guilty plea to charges of theft, transferring criminal property, and concealing criminal property, Chowles was sentenced in July 2025 to five years and six months in prison. The NCA subsequently terminated his employment on July 11, 2025.

The Crown Prosecution Service (CPS) evaluated the benefit derived from Chowles’ criminal activity, amounting to £1,970,759.27, largely due to the increase in Bitcoin’s value. The court subsequently issued a confiscation order for £1,810,678.93, emphasizing that crime does not pay.

“Paul Chowles exploited a position of trust for personal gain, stealing assets that had already been recovered through law enforcement action,” said Luke Clements, a specialist prosecutor at the CPS Proceeds of Crime Division.