Federal Police Officer Faces Allegations of Crypto Theft
A federal police officer is currently facing legal proceedings in the Melbourne Magistrates’ Court, accused of pocketing confiscated cryptocurrency from an online drug trafficking syndicate. The committal hearing, overseen by Magistrate Malcolm Thomas, is ongoing, and the defendant’s lawyer has stated that they will dispute the accusations, claiming the case is “circumstantial.”
Discovery of Crypto Wallet During Drug Trafficking Raid
The suspended federal police officer, William Wheatley, was initially charged in December 2022. Court documents reveal that Wheatley is accused of stealing 81.616 Bitcoin from a cryptocurrency wallet found during an investigation into drug and steroid trafficking via the postal system in January 2019.
During a raid, law enforcement discovered substances resembling steroids and an encrypted email service allegedly used for drug transactions with payments made in Bitcoin. They also found a Trezor-brand hardware crypto wallet, which was later handed over to the Icarus detectives.
Transfer of Stolen Bitcoin
About three weeks after the raid, the Icarus Taskforce obtained approval to regain access to the digital wallet. Cyber Crime Squad Detective Sergeant Deon Achtypis accessed the wallet on February 14 and discovered that 81.616 Bitcoin had been transferred from it shortly after its seizure on January 29.
The stolen Bitcoin, valued at around $450,000 at the time, was transferred to two other digital wallets before becoming untraceable. Today, it would be worth over $6.3 million.
Officer’s Involvement Unveiled
An investigation initially suspected involvement from an associate of the drug traffickers but was reopened in 2021 when new tracing tools pointed towards a police officer’s participation. Detective Achtypis found that one of the IP addresses linked to the AFP headquarters in Melbourne, suggesting the involvement of a police officer.
Craig Gillespie, a crypto investigator hired by the Australian Commission for Law Enforcement Integrity, confirmed that between January 29 and April 11, 2019, 28 transactions were conducted from the wallet on various crypto platforms. Some of these transactions were allegedly traced back to withdrawals deposited into Mr. Wheatley’s bank account between 2019 and September 2022.
Officer’s Testimony
During the proceedings, AFP officer Jesse Wyatt testified that he was the only federal police officer present during the search in Hoppers Crossing on January 25. He admitted that when the cryptocurrency wallet was discovered, he was unaware of its nature and sought assistance from Mr. Wheatley, described as a “specialist” in the AFP’s cybercrime division.
By
By
