Australian Officer Accused of Stealing Millions in Seized Bitcoin
An Australian Federal Police (AFP) officer has been accused of stealing over 81.616 Bitcoin from an online drug trafficking investigation in 2019.
According to an Australian news media report, William Wheatley appeared in court this week, contesting allegations of theft and dealing in the proceeds of crime.
- Wheatley is accused of stealing 81.616 Bitcoin seized during a Melbourne drug raid.
- The BTC, then worth $450K, was allegedly moved days after cops accessed the wallet.
- Investigators traced suspicious transactions to the officer’s bank account.
According to court documents, Wheatley allegedly moved 81.616 Bitcoin from a cryptocurrency wallet confiscated during a drug raid in Hoppers Crossing in January 2019.
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Police accessed the wallet weeks later, which contained over $450,000 worth of Bitcoin at the time. However, the funds were transferred just days after the raid to two other wallets that investigators could no longer trace.
The AFP cybercrime specialist was the only officer from the force present during the search that uncovered steroids and the crypto wallet. Given his expertise, the team contacted Wheatley for advice when detectives discovered the unfamiliar device.
“Hey mate, you ever seen one of these? Maybe a cryptocurrency thing,” he wrote in a text message read to the court.
Police reopened the case after new tracing tools surfaced
Police only reopened the cold case in 2021 when improved blockchain tracing technology highlighted a link between the stolen crypto and an IP address registered to AFP headquarters in Melbourne.
The investigator brought on to crack the case claimed he traced numerous transactions into Wheatley’s personal bank account through September 2022.
Read more: Crypto Aided In Child Exploitation, Human Trafficking: Report
Wheatley served as a digital currency specialist for the AFP’s cyber crime division. The missing BTC is now worth over $4.2 million, according to the current price of $51,700 per BTC.
His lawyer argued at the pre-trial hearing that the prosecution’s case remains circumstantial. However, the detailed tracing efforts by investigators convinced the court to send the allegations to trial.
