Ex-NCA officer who stole 50 seized Bitcoin from a Silk Road 2.0 case must now repay £1.8 million

A former National Crime Agency officer who stole 50 Bitcoin seized from the dark web market Silk Road 2.0 has been ordered to repay £1,810,678.93. Paul Chowles, 44, was jailed for five years and six months in 2025. Only 30 of the coins were recovered, and the order reflects how much Bitcoin’s price has risen since the theft.

Crypto theft involved Bitcoin seized by law enforcement

The Crypto theft centred on Bitcoin that was already in the possession of law enforcement after being seized as part of an investigation into Silk Road 2.0.

According to the supplied report, Chowles exploited his position as a National Crime Agency officer to steal the cryptocurrency and subsequently attempted to conceal it.

The case is notable because the assets were not simply proceeds of an ordinary cryptocurrency fraud. The Bitcoin had already been recovered through law enforcement action before Chowles took it for personal gain.

Luke Clements of the CPS Proceeds of Crime Division said the former officer had abused the trust placed in him.

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

The 30 Bitcoin recovered from Chowles form part of the confiscation order, meaning their current value is incorporated into the amount he has been ordered to repay.

Chowles, who is from Bristol, was dismissed from the National Crime Agency in July 2025.

The case demonstrates how the value of cryptocurrency can materially affect proceeds-of-crime proceedings. Bitcoin seized at one point in an investigation can be worth considerably more by the time confiscation proceedings are completed.

£1.8m confiscation order follows crypto theft conviction

The Crypto theft conviction resulted in a five-year-six-month prison sentence, but the financial consequences have continued beyond Chowles’ imprisonment.

The CPS Proceeds of Crime Division obtained a confiscation order for £1,810,678.93. The order includes the value of the cryptocurrency already recovered.

Clements said the confiscation process was intended to prevent convicted offenders from retaining financial benefits connected to criminal activity.

“Confiscation Orders are a powerful tool in ensuring that crime does not pay.” — Luke Clements, CPS Proceeds of Crime Division.

He added that the CPS would continue pursuing criminal assets even when they had been concealed.

“Today’s Order sends a clear message that we will pursue offenders’ assets relentlessly and seek to recover criminal proceeds wherever they are hidden.” — Luke Clements, CPS Proceeds of Crime Division.

A Compensation Order was also issued for the victim. The funds obtained under that order will be directed toward the victim’s outstanding Confiscation Order.

The CPS said its Proceeds of Crime Division has recovered more than £530 million through Confiscation Orders over the past five years. More than £102 million of that amount has been returned to victims as compensation.

Crypto theft cases highlight cryptocurrency’s role in crime

The Chowles case is part of a wider pattern in which digital assets have featured in investigations involving stolen or concealed funds.

The report notes that cryptocurrency has become a popular method for criminals seeking to hide the proceeds of crime. Its use in financial crime has also increased scrutiny of how digital-asset transactions are tracked, recovered and regulated.

In June, financial adviser Timothy “Paul” Barnes, 68, of Droitwich, was sentenced to 11 years in prison at Worcester Crown Court after defrauding people he knew, clients and a charity of nearly £2 million. Barnes had invested money taken from his victims into his cryptocurrency wallet.

While the cases involve different offences, both illustrate the role digital assets can play in the movement or storage of criminal proceeds.

The Crypto theft involving Chowles is distinct because the Bitcoin had already been seized by authorities before it was stolen by a law enforcement officer.

FCA crypto regulation approaches ahead of crypto theft cases

The case comes as the UK prepares for a broader regulatory framework for crypto assets.

Under the planned regime, crypto assets are due to come under Financial Conduct Authority regulation from October 2027. Crypto exchanges, dealers and agents will be brought within the regulatory perimeter under the new framework.

Crypto firms serving UK customers will also be required to meet standards relating to transparency, consumer protection and operational resilience similar to those imposed on other FCA-regulated firms.

The government began the legislative process to bring crypto assets into the regulatory perimeter in April 2025.

The planned regulatory changes are separate from the criminal proceedings against Chowles, but they form part of a wider shift toward greater oversight of the UK’s cryptocurrency sector.

FCA research published in 2025 found that 12% of UK adults owned crypto, compared with 10% in its previous findings.

As cryptocurrency ownership expands, cases involving Crypto theft, fraud and the concealment of criminal proceeds remain an issue for law enforcement and regulators.