The National Anti-Corruption Commission (NACC) in Australia has leveled accusations against a federal police officer for allegedly erasing a Trezor hardware wallet containing 81.62 Bitcoin at a crime scene. Utilizing crypto tracing software, the authorities claim that he transferred the Bitcoin into his own possession.
As per a recent report, the Australian police discovered the hardware wallet during a drug raid at a residence, but it took them approximately three weeks to obtain court permission to access it. However, when they finally accessed the wallet, they found no Bitcoin (BTC) remaining, as federal agent William Wheatley allegedly moved it out shortly after the raid.
At the time of the raid in 2019, the hardware wallet was said to contain 81.62 Bitcoin, valued at $309,000. However, its value stands at approximately $4.2 million at the time of writing.
Detective Sergeant Deon Achtypis from the cybercrime squad indicated that the authorities initially suspected an associate of a crime syndicate to be responsible for the theft of the Bitcoin.
The suspicion arose when the police force discovered a device containing the seed phrase to the hardware wallet. The seed phrase consists of 12 to 24 random words that can be used as a recovery method in case the wallet is lost or stolen.
However, after an extensive investigation into IP addresses used to access the stolen Bitcoin using crypto tracing software, Achtypis allegedly found 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 that they had begun using Chainalysis Reactor software to aid in tracing illicit crypto transactions.
Furthermore, advancements in crypto detective software technology are contributing to a higher rate of recovered stolen crypto. On January 29, it was reported that over $674 million had been recovered from more than 600 large-scale crypto hacks in 2023.
Meanwhile, Wheatley is pleading not guilty to charges of exploiting his position as a public officer for personal gain, theft, and involvement with proceeds of crime. He reportedly intends to contest the accusations regarding the stolen Bitcoin from the Trezor wallet. This development comes amidst Trezor’s acknowledgement of a security breach that affected nearly 66,000 users.
On January 20, it was reported that Trezor had disclosed unauthorized access to a third-party support portal on January 17. The company warned that individuals who had interacted with Trezor’s support team since December 2021 might have had their data compromised in the incident.