Some people may not know that bitcoin can be traced to someone if the government wants to trace it. This is not the first time such bad actors are known.
This is what most people don't know that all the KYC that you are required to do before getting your crypto exchanges done is stored somewhere and when there is a suspected criminal act is committed such as the one that is mentioned here about illegal transfer of crypto assets or even scam the state can use the law to let exchanges to provide the KYC details from exchanges to be provided
This is really an unfortunate situation that this officer has put himself because this is a letdown to his position as a police officer if he was really interested in Bitcoin he should have started to invest in Bitcoin starting small is not a bad one