An Australian law enforcement officer finds himself embroiled in controversy amidst accusations of cryptocurrency theft, marking an unexpected fusion of legal proceedings and the digital currency landscape. William Wheatley, a federal police officer, stands at the centre of a legal battle currently unfolding in the Melbourne Magistrates’ Court. The charges against Wheatley include theft, handling proceeds of suspected criminal activities, and exploiting confidential information for personal gain. These allegations were brought forth by the now-defunct Australian Commission for Law Enforcement Integrity in December 2022.
The accusations stem from events related to an investigation into an online drug trafficking network, during which Wheatley allegedly misappropriated a significant amount of cryptocurrency that was purportedly seized. Court documents claim that Wheatley unlawfully acquired 81.616 Bitcoin from a digital wallet, discovered during an inquiry into drug and steroid trafficking via postal channels in January 2019.
Detective Sergeant Deon Achtypis of the Cyber Crime Squad testified to Wheatley’s involvement following a raid on a residence in Hoppers Crossing as part of Operation Viridian on Jan. 25, 2019. This operation, conducted by the Icarus Taskforce, a collaboration between Victoria Police and the Australian Federal Police, uncovered substantial quantities of substances resembling steroids. Evidence from the raid indicated the utilisation of encrypted email services for drug transactions, with Bitcoin facilitating payments. A Trezor-brand hardware cryptocurrency wallet was found and later handed over to Icarus detectives.
Approval was granted three weeks later to regain access to the digital wallet, revealing that the Bitcoin had been transferred shortly after its seizure. The funds, valued at around $450,000 at the time, were subsequently moved to other digital wallets, complicating tracking efforts.
Further investigation, conducted by cryptocurrency expert Craig Gillespie, unveiled transactions from the wallet leading to withdrawals into Wheatley’s bank account between 2019 and 2022. AFP officer Jesse Wyatt testified that Wheatley, described as a “specialist” in the AFP’s cybercrime division, was contacted upon the discovery of the cryptocurrency wallet during the raid.
In his defence, Wheatley’s lawyer, Luke Barker, argued that the case against his client relies heavily on circumstantial evidence, signalling their intent to challenge the allegations.
This case brings attention to the intricate challenges posed at the juncture of law enforcement and cryptocurrency, shedding light on potential vulnerabilities within the system.