Australian Federal Officer Faces Allegations of Pilfering 81 Bitcoin During Drug Raid

Denies involvement as authorities utilize crypto-tracing tools to track Bitcoin from a crime scene to Binance.

In a startling revelation, the National Anti-Corruption Commission (NACC) of Australia has accused a federal police officer of allegedly wiping a Trezor hardware wallet containing 81.62 Bitcoin during a drug raid. The officer, William Wheatley, is vehemently denying any involvement in transferring the Bitcoin to the Binance exchange.

The NACC's claim is rooted in the utilization of crypto tracing software, which purportedly traces the Bitcoin's movement into the officer's possession.

During a drug raid at a residence, the Australian police discovered the hardware wallet. However, it took about three weeks to secure court permission to access it. Shockingly, upon examination, the wallet was found empty, with the officer supposedly transferring the Bitcoin shortly after the initial raid.

At the time of the 2019 raid, the hardware wallet held 81.62 Bitcoin, valued at $309,000, but has now surged to around $4.2 million.

Detective Sergeant Deon Achtypis of the cybercrime squad initially suspected a crime syndicate associate but, after tracing IP addresses with crypto tracing software, found a potential link to Wheatley.

"I formed the opinion that a police member may have been involved in the movement of the cryptocurrency," stated Achtypis.

Globally, law enforcement agencies are increasingly turning to crypto-tracing software to combat illegal activities involving digital assets. In August 2023, Canadian law enforcement announced the adoption of Chainalysis Reactor software for tracing illicit crypto transactions.

The evolving technology of crypto detective software has contributed to a higher rate of recovered stolen crypto. Recent reports indicate that over $674 million was successfully recovered from more than 600 large-scale crypto hacks in 2023.

Wheatley, maintaining his innocence, faces charges related to exploiting his position as a public officer for personal gain, theft, and involvement with the proceeds of crime. Despite Trezor's acknowledgment of a security breach impacting nearly 66,000 users, Wheatley is prepared to contest charges linked to the allegedly stolen Bitcoin from the Trezor wallet.

(Photo Source / Blockonome)