During the investigations, US officials confiscated over $3.4 billion.
James Zhong, who admitted to wire fraud charges connected to stealing over 51,680 Bitcoin (BTC) from the Silk Road marketplace in 2012, has been sentenced to one year and one day in prison.
The US Attorney’s Office for the Southern District of New York announced the sentencing on April 14th after Zhong pleaded guilty in November 2022.
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In the press release, US Attorney Damian Williams stated:
<...> 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.
Williams revealed that Zhong hid his crime for approximately ten years before being charged. US Attorney disclosed that malicious actor used Bitcoin (BTC) mixer, "overseas cryptocurrency exchange, and an impressive array of technological tools."
US Attorney Damian Williams warned cybercriminals that they would be held accountable regardless of the sophistication of their schemes.
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.
In November 2021, US authorities discovered Zhong's Bitcoin stash, valued at around $3.4 billion, in his Georgia home, concealed in a floor safe and a computer hidden inside a popcorn tin.
The notorious Silk Road marketplace, which has been out of operation for about a decade, facilitated the trade of illegal goods, attracting the attention of US law enforcement. Ross Ulbricht, the platform's creator, was arrested in 2013 and is currently serving two life sentences without parole.
