Bitcoin Theft Allegations Involve Federal Officer

Raid and Missing Crypto

In 2019, a police raid seized a hardware wallet containing 81.62 Bitcoins, worth $309,000 at the time. When investigators accessed the wallet later, the Bitcoins were gone.

Seed Phrase Breakthrough

Investigators discovered a device with the wallet’s seed phrase, a unique recovery code. Using crypto-tracking software, they traced the transferred Bitcoins to Officer William Wheatley’s online activity.

Officer’s Denial

Wheatley was suspended and accused of exploiting his access to the wallet. However, he denies wrongdoing, claiming a technical glitch caused the loss.

Impact on Crypto Forensics

This case highlights the effectiveness of crypto-tracking software in combating crypto-related crimes. However, concerns arise about potential misuse and privacy violations.

Hardware Wallet Vulnerability

The incident also raises concerns about the vulnerability of hardware wallets, as Trezor recently disclosed a major hack affecting numerous users.