A serious inside scandal has rocked the UK’s Nationwide Crime Company (NCA) after Paul Chowles, a lead crypto analyst, was convicted for stealing 50 bitcoin from a seized pockets tied to the infamous Silk Highway 2.0 market.
The theft and tried cover-up
In 2017, Chowles used his privileged entry to switch 50 BTC, then value round £60,000, from a confiscated pockets belonging to Thomas White, the operator of Silk Highway 2.0.
To hide the theft, Chowles utilized bitcoin mixing companies to separate and obscure the funds, shifting them via exchanges and pay as you go playing cards.
As bitcoin’s value climbed, the stolen cash soared in worth to over £4.4 million earlier than Chowles was caught.
Pockets entry from jail
Investigators initially suspected White may need regained entry to the pockets from jail.
Nonetheless, detailed blockchain evaluation pointed to Chowles, resulting in his arrest and subsequent 5 and a half yr jail sentence.
Chowles’ case highlights the facility of bitcoin’s clear ledger, which enabled authorities to hint the actions of the stolen cash years after the crime.
Background: Silk Highway 2.0 and asset seizure
Silk Highway 2.0 was launched in 2013 following the FBI’s closure of the unique Silk Highway.
British nationwide Thomas White ran the successor market till its 2014 dismantling.
Authorities seized 97 BTC from White and tasked Chowles with managing the digital property, giving him the chance to hold out the theft.
Blockchain forensics expose insider misconduct
Between 2021 and 2022, Chowles tried to transform the stolen bitcoin into money utilizing platforms like Cryptopay and Wirex, spending tens of hundreds of kilos.
Investigators used Chainalysis instruments to observe the stream of funds via mixers and exchanges, finally uncovering Chowles’ involvement.
The NCA dismissed him for gross misconduct following his responsible plea in March 2025.
Alex Johnson, a Crown Prosecution Service prosecutor, acknowledged:
“Chowles took benefit of his place engaged on this investigation by lining his personal pockets whereas devising a plan that he believed would be sure that suspicion would by no means fall upon him.”
Asset restoration and classes discovered
Authorities recovered almost £470,000 from Chowles’ accounts and proceed efforts to reclaim the remaining proceeds.
The case underscores insider dangers in digital asset administration and the effectiveness of blockchain analytics for regulation enforcement.