A man was sentenced to a year and a day in prison for stealing over 50,000 Bitcoins worth billions of dollars from a dark web online marketplace.
James Zhong, 32, stole the Bitcoins by opening multiple accounts and duping Silk Road into releasing the funds to his accounts, Business Insider reports.
According to a statement from the Department of Justice, he did not buy or sell anything on the website.
Dark Web Bitcoin Thief Faces Jailtime
Silk Road was a dark web online marketplace where users could use Bitcoin to purchase illegal items such as drugs, weapons, and pornography.
The FBI shut down the website in 2013, and its founder, Ross Ulbricht, was sentenced to life in prison for, among other things, drug trafficking, money laundering, and hacking.
According to the DOJ statement, Zhong committed wire fraud in September 2012 by stealing 50,000 Bitcoins from Silk Road. He managed to keep what he had done and how he came by his fortune hidden for the next ten years.
However, US authorities obtained a search warrant in November 2021 to search Zhong's home in Gainesville, Georgia. They discovered over 50,000 Bitcoins hidden in an underground floor safe and a single-board computer hidden under blankets in a Cheetos popcorn tin stored in a bathroom closet.
Authorities Uncover Billions Worth of Bitcoin
Authorities discovered more than $660,000 in cash and silver and gold bars at Zhong's home, in addition to 51,680 Bitcoin. The total value of the seized Bitcoins was $3.4 billion at the time, and they are now worth more than $1.5 billion.
According to the photo provided by the DOJ, the crypto tin originally contained Cheetos-brand popcorn in both Flamin' Hot and Cheddar flavors. According to media reports, the container and its promise of "2 favorites together" were only available at Walmart during the 2020 holiday season.
Zhong Guilty of Wire Fraud
The United States Attorney for the Southern District of New York, Damian Williams, announced that James Zhong was sentenced to one year and one day in prison for wire fraud in September 2012, when he illegally obtained approximately 50,000 Bitcoin from the Silk Road dark web internet marketplace.
"Zhong used a decentralized Bitcoin mixer, an overseas cryptocurrency exchange, and an impressive array of technological tools to frustrate tracing efforts," said US Attorney Damian Williams in a statement.
However, the federal government uncovered Zhong's scheme and obtained final orders of forfeiture for more than 51,680 Bitcoin thanks to its efforts in following the money.
The authorities who caught Zhong have a message for other cybercriminals: "We will follow the money and hold you accountable, regardless of how sophisticated your scheme or how long it takes."
According to Reuters, the illicit use of cryptocurrencies reached a record $20.1 billion in 2022, as transactions involving companies sanctioned by the United States skyrocketed, based on data from blockchain analytics firm Chainalysis.
Stay posted here at Tech Times.
Related Article: Bitrue Crypto Exchange Hackers Steal Nearly $23 Million in Latest Hot Wallet Exploit
