The National Anti-Corruption Commission (NACC) in Australia has lodged accusations against a federal police officer for erasing 81.62 Bitcoin from a Trezor hardware wallet found at a crime scene. Utilizing crypto tracing software, authorities claim that the officer transferred the Bitcoin into his own possession.
A recent report reveals that the Australian police discovered the hardware wallet during a drug raid at a residence. However, they waited approximately three weeks to obtain court permission to access it. Upon accessing the wallet, they discovered that there was no Bitcoin (BTC) present, as the federal agent, William Wheatley, allegedly moved it shortly after the raid.
During the raid, the hardware wallet contained 81.62 Bitcoin, valued at $309,000 at the time. However, it is currently worth around $4.2 million.
Detective Sergeant Deon Achtypis from the cybercrime squad initially suspected that a crime syndicate associate was responsible for the theft. This suspicion arose when the police force found a device containing the seed phrase to the hardware wallet. A seed phrase is a sequence of 12 to 24 random words used to recover a wallet if it is lost or stolen.
However, after an extensive investigation into the IP addresses used to access the stolen Bitcoin using crypto tracing software, Achtypis discovered a connection to Wheatley.
Law enforcement agencies worldwide are increasingly adopting crypto tracing software to combat illicit activities involving digital assets. In August 2023, Canadian law enforcement announced their use of Chainalysis Reactor software to trace illicit crypto transactions.
Advancements in crypto detective software technology have contributed to a higher rate of recovered stolen crypto. In January 2023, over $674 million was recovered from more than 600 large-scale crypto hacks.
Meanwhile, Wheatley maintains his innocence against allegations of exploiting his position for personal gain, theft, and involvement with the proceeds of crime. He is reportedly prepared to fight the charges related to the stolen Bitcoin from the Trezor wallet. These developments come as Trezor acknowledges a security breach affecting nearly 66,000 users. Unauthorized entry into a third-party support portal occurred on January 17, potentially compromising the data of individuals who had interacted with Trezor’s support team since December 2021.