Caught red-handed, an Australian federal officer finds himself at the heart of a case of cryptocurrency embezzlement during an anti-drug operation. Accused of stealing 81 bitcoins from a Trezor wallet, William Wheatley pleads not guilty, despite overwhelming evidence revealed by a meticulous investigation.
In January 2019, a search as part of an investigation into steroid trafficking leads to the discovery of a Trezor wallet. The authorities also seize computer hardware containing the seed phrase needed to access the funds. Three weeks later, the wallet was found empty, launching an internal investigation within the Federal Police.
Two years after the event, Deon Achtypis of the Cyber Crime Squad decides to take the case in hand. His investigations lead him to suspect a colleague who was present during the search. Further investigation reveals a suspicious transfer of the 81 bitcoins to Binance, via an IP address linked to the police and other digital clues leading directly to Wheatley.
The investigation revealed withdrawals from Binance to a bank account belonging to Wheatley, as well as an IP address linked to an acquaintance of the accused. Despite his lawyer's defense of "circumstantial" evidence, Wheatley struggled to justify these transactions in court.
This case highlights the transparency and traceability of transactions on public blockchains, making it difficult for criminals to use cryptocurrencies to conceal their illicit activities. It also serves as a reminder that abuse of position for personal gain, especially within law enforcement, rarely leads to a favorable outcome.
