Australian Federal Officer Accused of Stealing 81.62 Bitcoins from Seized Wallet in Drug Raid
Summary:
An Australian federal police officer is facing allegations of stealing 81.62 Bitcoins from a hardware wallet seized during a drug raid in 2019. Detective Sergeant Deon Achtypis initially suspected an affiliated gang member, but a thorough investigation led him to federal officer William Wheatley. Wheatley denies the accusations and plans to contest the charges. The incident coincides with Trezor revealing a security breach affecting nearly 66,000 users.
An Australian federal police officer is under investigation by the National Anti-corruption Commission, following allegations of misappropriation of a Trezor hardware wallet storing 81.62 BTC, uncovered at a crime scene. The transactions were scrutinized using cryptocurrency tracking software. The hardware wallet was seized during a raid on a house related to drug trafficking, but authorities took three weeks to secure legal permission to examine its contents. When authorities finally opened the wallet, they found it empty, leading them to believe it had been drained soon after the drug raid. In 2019, the amount of Bitcoin reportedly held in the wallet was worth $309,000, but its value has since increased to around $4.2 million. Detective Sergeant Deon Achtypis of the cybercrime squad initially suspected an affiliated member of the criminal gang to be behind the theft of the Bitcoin. The reasoning for this stemmed from the discovery of a device holding the recovery seed phrase for the hardware wallet, at the scene of the crime. However, rigorous analysis of IP addresses correlating with the stolen Bitcoin eventually traced back to federal officer William Wheatley. "The evidence led me to suspect that a member of the police might have been involved in the redirection of the cryptocurrency." Sophisticated cryptography analytical tools are becoming more effective at recovering pilfered cryptocurrency, with around $674 million successfully reclaimed from over 600 major cryptocurrency breaches in 2023. #PeckShieldAlert reported, that 2023 saw over 600 significant crypto-space breaches, with losses totaling approximately $2.61 billion, of which $674.9 million was recovered. Losses from hacks (excluding #Multichain unauthorized withdrawals) accounted for $1.51 billion, and scams accounted for $1.1 billion, marking a 27.78% decrease from 2022. #DeFi protocols remained the primary target.
William Wheatley, on the other hand, refutes the claims, denying misuse of his public officer position for personal benefit, theft, and engagement with criminal proceeds. He reportedly plans to fight the charges related to the cryptocurrency theft. His case is concurrent with Trezor acknowledging a security violation affecting nearly 66,000 users. As Cointelegraph reported on January 20, Trezor confirmed an unauthorized access to a third-party support portal on January 17. The company cautioned customers who interacted with the Trezor support team since December 2021 that they might be at risk, following the data breach. Read also: $3.4B in Bitcoin hidden in a popcorn tin: Unraveling the Silk Road hacker's tale.
Published At
2/18/2024 5:10:38 AM
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