'Greedy' National Crime Agency officer jailed after stealing £4.4 million in bitcoin from dark web drug dealer a 'first of its kind case', specialist prosecutor tells Mail podcast
Paul Chowles, 42, was sentenced to five and a half years in prison for stealing Bitcoin now worth £4.4 million from a drug dealer who was under investigation in 2017.
Drug dealer Thomas White, who operated a dark web marketplace known as 'Silk Road 2.0' from his Liverpool home, alerted police to Chowles after telling investigators that proceeds from his criminal enterprise had gone missing.
Chowles's theft went undetected for five years as he used his expertise in cybercrime to conceal his ill-gotten gains.
Speaking to the Mail's Trial Plus podcast, specialist prosecutor Alex Johnson, who worked for the Crown Prosecution Service against Chowles, described why the case is truly 'a first of its kind.'
Johnson said: 'When the Bitcoin was stolen in 2017, it was worth around £59,000. During the investigation, the value of Bitcoin exploded.
'The stolen Bitcoin would now be worth in excess of £4 million. An interesting aspect of the case was that Chowles was able to spend more money than he had stolen because the value of it went up during the time it was in his possession.
'Chowles was extremely calculated in the way he dealt with the stolen Bitcoin. He moved it into a system on the dark web called the Bitcoin fog.
'It was a way criminals could effectively wash dirty Bitcoin and send it back to themselves as clean Bitcoin.
'Merseyside police had to carry out an extremely diligent investigation to locate the Bitcoin, including hiring an expert to locate every transaction within the fog… this showed the Bitcoin being transferred into an account which could be linked unequivocally to Chowles.'
Chowles was not only strategic in concealing the Bitcoin's transfer, but also careful in how he spent the stolen money.
He avoided 'flashy' purchases, using his newfound wealth to buy groceries and home supplies.
'Chowles spent the money on fairly routine things', Johnson told the podcast.
'Working through his bank statements showed purchases at Asda, Sainsburys, Screw Fix and visits to local pubs and restaurants.
'He was careful – no holidays to the Bahamas or Ferraris or anything like that. Just day to day spending.
'Chowles used the stolen Bitcoin for more than 900 transactions and was able to carry out debit card and bank transfers of just under £80,000.'
The specialist prosecutor emphasised that the lengthy prison sentence sends a strong message to potential Bitcoin criminals.
'At the end of the day, Chowles is a greedy and dishonest officer who decided he would breach public trust and steal something he should have been protecting', Johnson said.
'He's a family man. He lives with his partner… he really has destroyed what was a good career and a good life.
'I think for him to go to prison at this stage of his life must be real deterrent for anyboy else who might be looking at what's happened and considering doing the same thing.'
Chowles was able to get hold of White's Bitcoin by accessing one of several USB drives containing the digital currency that had been seized from White's address.
White operated online under the alias, 'Dread Pirate Roberts', a reference to the 1987 fantasy film The Princess Bride.
In the film, the name Dread Pirate Roberts is passed down through generations of fearsome pirates, when their last leader retires.
The USB drive containing the Bitcoin was titled 'Dread Pirate Roberts retirement fund', which led Johnson to make an amusing observation.
'Chowles considered this his retirement fund – and in doing so, became the new Dread Pirate Roberts!'
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Daily Mirror
30 minutes ago
- Daily Mirror
Newcastle's anger with Liverpool grows after Alexander Isak's latest move
Alexander Isak is training alone at former club Real Sociedad as he attempts to force his way out of Newcastle and towards becoming Liverpool's latest big money signing Newcastle United are growing increasingly frustrated with Liverpool as the Alexander Isak transfer saga rumbles on without development. The Toon are yet to receive a bid for their leading goalscorer despite Isak making it clear that he is keen to leave St James' Park amid supposed interest from the Premier League 's reigning champions. Sweden star Isak, 25, was not taken on tour to Asia by Eddie Howe, though the club said it is because he has a thigh injury. Yet it turns out that Isak is now in Spain, training alone at the facilities of his former club Real Sociedad, while he waits for his future to be sorted out. Liverpool are one of few clubs capable of affording Newcastle 's £120m asking price for one of the game's most prolific centre-forwards, whose current salary is also £120,000 per week. However no formal submission of interest has been lodged and that has left Isak's current club irritated, according to their local media. Liverpool have already usurped Newcastle to the signing of France Under-21 striker Hugo Ekitike from Eintracht Frankfurt but if Isak digs his heels in Eddie Howe's side may be left with no other option but to enter negotiations with the Reds. Arne Slot has seen his dressing room boosted by signings worth close to £300m already this window, though there is an expectation that further departures must take place before an Isak bid is sent. Luis Diaz departed this week in a £65m deal to Bayern Munich, following Jarrell Quansah and Caoimhin Kelleher out the door. But Darwin Nunez, Harvey Elliott and Federico Chiesa are also being linked with moves away in transfers that will offset the club's high spending. Newcastle, meanwhile, continue to show an interest in Brentford star Yoane Wissa - suggesting that they are already putting plans in place for life without Isak. The Bees are reluctant to sell another forward, however, having seen Bryan Mbeumo head to Manchester United in a £65m switch.
Auto Car
30 minutes ago
- Auto Car
The CEO of Jaguar and Land Rover is retiring after two years in the top job
In a recent interview with Autocar, Mardell revealed that he had driven the new GT and said it was the "most fun I've had" in his time as JLR boss. "It was stunning in terms of its speed, its acceleration, its performance, but also how it delivered the power with a real sense of character," he said. "The chassis team are really excited about the possibilities of the vehicle.' Speaking more generally about Jaguar's prospects as an all-electric luxury brand, Mardell said he was "certain we will have wait lists which are significant relative to the volumes we aspire for with the first product'. He continued: "In today's market conditions, I don't see anything which is going to concern me about the success of the new Jaguar in this new world at all, actually.' Mardell leaves JLR in a position of far greater stability than that it was in when he took the top job, but the company still faces strong headwinds. Chief among those is the imposition of new tariffs on foreign-built cars in the crucial US market, which accounts for a huge proportion of sales of JLR's most profitable models. The UK recently secured a trade deal that reduced the US import tariff on its exported cars from an initially mooted 25% to 10%, which is good news for the Solihull-built Range Rover models and the Halewood-produced Range Rover Evoque and Discovery Sport. But that levy only applies to the first 100,000 cars shipped to the US in a year, meaning any JLR models shipped above that number are liable to attract the higher 25% fee. Similarly, while the EU has now struck a deal with the US, cars shipped from the region to North America will still attract a 15% tariff, which will have significant implications for the Defender and Discovery, both built in Slovakia. Mardell's eventual replacement will also have to negotiate JLR's inevitable shift to a pure-electric line-up over the coming years, in the face of waning global demand for premium EVs.
The Independent
30 minutes ago
- The Independent
Car finance mis-selling case deadline revealed as millions could be owed compensation
Millions of motorists may soon be owed major payouts as a key deadline for legal proceedings over widespread mis-selling of car financing is set revealed. The Supreme Court will be delivering a crucial judgement on Friday which could pave the way for a massive redress scheme potentially affecting millions. It will rule on a shock Court of Appeal ruling last autumn that all car finance agreements with hidden commission were unlawful. The Financial Conduct Authority (FCA) has said it will set out exactly how an industry-wide redress scheme will work following the Supreme Court decision. Up to 90 per cent of new cars purchased in the UK are bought using motor finance, meaning millions could potentially be due payouts following the ruling. Anyone who bought a car before January 2021 using a car finance scheme could be eligible for compensation after the FCA found that many 'may have been charged too much' by their lenders. This is because some companies 'discretionary commission arrangements' with brokers, which gave them the power to adjust customers' interest rates on Personal Contract Purchase (PCP) and Hire Purchase agreements. Because these brokers earned more commission on higher rates, this created an incentive to maximise the rate given. An estimated 40 per cent of car finance deals were thought to be affected by the issue. The FCA outlawed this practice from 28 January 2021, but acknowledge that a 'high number' of people have now come forward to claim they had been overcharged before the ban. The financial regulator has confirmed that it will consult on a redress scheme and laid out the factors it will consider. In a statement in March 2025, it said: 'Firms would be responsible for determining whether customers had lost out due to their failings, but the FCA would set rules that firms must follow under the scheme and introduce checks to ensure they do.' However, the FCA is waiting for the upcoming Supreme Court judgement before finalising details, as the outcome of this case could expand the scope of the redress scheme much further. The shock Court of Appeal ruling last autumn found that if a car finance agreement didn't inform customers of all the details of commission, it was likely unlawful. This is a regular practice, with experts predicting 99 per cent of deals are affected by the issue. It is car finance firms Close Brothers and Motonovo are appealing this judgement in the Supreme Court, with the final judgement set to decide how many motorists will be due compensation. The FCA has said it will confirm within six weeks of this judgement if it is launching a compensation scheme. Money expert Martin Lewis said: 'This decision could have ramifications across the economy, far beyond car finance. 'If the Supreme Court doesn't overturn the Court of Appeal decision, the knock-on effects could be substantial on other forms of lending and the economy. It could shake the foundations of consumer lending (meaning less possible available credit for many). 'So much so, I have long said I worry it may do more harm than good for consumers. It's therefore unsurprising there's talk of the Chancellor overruling the decision if the Supreme Court follows the Court of Appeal.' The Money Saving Expert founder and FCA have both advised those who believe they may be affected to hold off on signing up to any claims management or law firms advertising their services over the issue. This is because these services will not be required if payouts are automatic, but may still be able to take payment. The regulator explains: 'Consumers should be aware that by signing up now with a CMC or law firm, they may end up paying for a service they do not need and having to pay up to 30 per cent in fees out of any award they may receive."
