Bitcoin Thief Will Serve Time
Posted on 05/02/2023
The person behind a scheme that was, at one time, worth US$ 3.4 billion, will serve time behind bars. The Bitcoin theft was committed online by James Zhong, when he was a 22 year old college student. He exploited a software bug on Silk Road in 2012. Zhong got away with 51,680 Bitcoin. Two years ago, Zhong’s home was raided and the cryptocurrency was recovered. Zhong kept the Bitcoin concealed in a Cheetos Popcorn tin. US$ 661,990 in cash was also seized, along with some precious metals. He was ordered to serve one year and one day in prison.
U.S. Attorney Damian Williams further explained: “Back in 2012, James Zhong committed wire fraud by stealing 50,000 Bitcoin from Silk Road, and for the next 10 years, he managed to conceal what he had done and how he obtained his fortune. Zhong used a decentralized Bitcoin mixer, an overseas cryptocurrency exchange, and an impressive array of technological tools to frustrate tracing efforts. But thanks to the relentless and skillful efforts of law enforcement in following the money, the federal government uncovered Zhong’s scheme and obtained final orders of forfeiture for over 51,680 Bitcoin. Cyber-criminals should heed this message: we will follow the money and hold you accountable, no matter how sophisticated your scheme and no matter how long it takes.”
At today’s prices, the Bitcoin is worth less than half its previous value, about US$ 1.5 billion.
