It is one of the largest bitcoin seizures in history. The US Department of Justice revealed on Monday that it had carried out a search at the home of a hacker at the end of November 2021. dark web named James Zhong. The one who paraded with yacht and private jet on social networks had in his possession more than 50,000 stolen bitcoins, worth around 3.4 billion dollars at the time of the seizure.
Bitcoins hidden in a floor and blankets
Still, capturing this stolen cryptocurrency was no small feat. It is the special agent of the IRS (Internal Revenue Service) in charge of the case, Tyler Hatcher, who testifies in a press release: “Mr. Zhong has implemented a sophisticated plan to steal bitcoins from the famous Silk Road marketplace. After he succeeded in his heist, he attempted to conceal his spoils through a series of complex transactions which he hoped would be enhanced by hiding behind the mystery of the darknet.
Investigators still managed to follow the trail until they landed in November 2021 at the home of James Zhong. The cryptocurrency was stored in various devices hidden in a safe located under a floor, but also on a single card computer hidden in a metal box of popcorn wrapped in blankets, and found in a bathroom cupboard. . When seized, the 50,000 bitcoins were worth a total of $3.4 billion, with the amount currently standing at just over $1 billion.
The road to crypto
The pirate had acquired this virtual loot in 2012 via the Silk Road platform. This drug resale site, created by Ross Ulbricht, made possible the purchase and home delivery of all kinds of drugs in exchange for cryptocurrencies. At the time, the site had seen enormous traffic and so much money in circulation. Eager to capitalize on the opportunity using multiple accounts, James Zhong quickly provoked about 140 transactions to force Silk Road to pay him 50,000 bitcoins in different wallets. The statement clarified that James Zhong’s accounts have never acquired anything on Silk Road.
James Zhong pleaded guilty to one count of wire fraud on Friday, November 4. He faces a maximum sentence of 20 years in prison. The verdict will be given on February 22. Recall that the creator of Silk Road was sentenced to life imprisonment.