![Bitcoin Whale Transfers Million Worth of Dormant Coins Dating Back to 2012 and 2013 Bitcoin Whale Transfers Million Worth of Dormant Coins Dating Back to 2012 and 2013](https://static.news.bitcoin.com/wp-content/uploads/2023/04/whalssllsd-768x432.jpg)
A hacker once in possession of 50,000 Bitcoin (BTC) stolen from the internet marketplace Silk Road is being sentenced to federal prison. In a new press release, the U.S. Department of Justice (DOJ) says that James Zhong has been sentenced to one year and one day in prison for stealing about 50,000 BTC from Silk […]
The post Silk Road Hacker Who Once Held Over $3,000,000,000 in BTC Sentenced to Prison by Feds 11 Years Later appeared first on The Daily Hodl.
James Zhong pleaded guilty to the wire fraud charges in November 2022 and had been awaiting sentencing for his role in the "unlawfully obtained" Bitcoin scheme.
The United States Attorney’s Office for the Southern District of New York has announced the sentencing for an individual who pleaded guilty to wire fraud charges connected to “unlawfully obtained” Bitcoin from the Silk Road marketplace in 2012.
In an April 14 announcement, the U.S. Justice Department said James Zhong was sentenced to one year and one day in prison for charges related to executing a scheme to steal more than 51,680 Bitcoin (BTC). Zhong pleaded guilty to the charges in November 2022 and had been awaiting sentencing.
“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,” said U.S. Attorney Damian Williams.
According to Williams, Zhong stole the BTC in 2012 and managed to conceal his crime for roughly 10 years before facing charges. U.S. authorities seized the Bitcoin holdings from Zhong’s home in the state of Georgia in November 2021, finding the bulk of the crypto in a floor safe and a computer concealed in a popcorn tin. The coins were worth roughly $3.4 billion at the time.
In the U.S. Attorney's sentencing memo for Silk Road Bitcoin stealer James Zhong: investigators seized criminal proceeds from "a single-board computer that was submerged under blankets in a popcorn tin stored in a bathroom closet." (Sentencing is today at 3 pm). pic.twitter.com/7aamQryQ6B
— Rachel Scharf (@rscharf_) April 14, 2023
Related: US government plans to sell 41K Bitcoin connected to Silk Road
The Silk Road marketplace, defunct for roughly 10 years, allowed users to buy and sell illicit goods such as weapons and stolen credit card information, drawing the attention of U.S. authorities. The creator of the platform, Ross Ulbricht, was arrested for his role in 2013 and is currently serving two life sentences without the possibility of parole.
Magazine: US enforcement agencies are turning up the heat on crypto-related crime
On March 14, 2023, the government sold 9,861 BTC for $215.7 million, according to court documents filed on March 31.
The United States government plans to liquidate more than 41,000 Bitcoin seized as part of the case against Silk Road creator Ross Ulbricht.
A March 31 filing with U.S. District Court for the Southern District of New York regarding the case against James Zhong said U.S. government authorities had begun liquidating roughly 51,352 Bitcoin (BTC) seized in the Ulbricht case. According to the filing, officials sold roughly 9,861 BTC for more than $215 million on March 14, leaving roughly 41,491 BTC.
"The Government understands [the Bitcoin] is expected to be liquidated in four more batches over the course of this calendar year," said the court filing.
This is a developing story, and further information will be added as it becomes available.
A crypto analytics firm says the US government is suddenly transferring massive amounts of Bitcoin that it seized from the defunct, nefarious marketplace Silk Road. According to PeckShield, the US just sent 9,826 BTC worth $217 million to Coinbase, where it could be sold on the open market. An additional 39,175 BTC worth $867 million […]
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