Individual behind $3.4B Silk Road Bitcoin theft sentenced to one year in prison

The US Legal professional’s Workplace for the Southern District of New York has introduced the sentencing for a person who pleaded responsible to wire fraud costs linked to “unlawfully obtained” Bitcoin from the Silk Street market in 2012.

In an April 14 announcement, the U.S. Justice Division said James Zhong was sentenced to 1 yr and sooner or later in jail for costs associated to executing a scheme to steal greater than 51,680 Bitcoin (BTC). Zhong pleaded guilty to the charges in November 2022 and had been awaiting sentencing.

“Cyber-criminals ought to heed this message: we are going to observe the cash and maintain you accountable, irrespective of how subtle your scheme and irrespective of how lengthy it takes,” mentioned U.S. Legal professional Damian Williams.

In response to Williams, Zhong stole the BTC in 2012 and managed to hide his crime for roughly 10 years earlier than going through costs. U.S. authorities seized the Bitcoin holdings from Zhong’s house within the state of Georgia in November 2021, discovering the majority of the crypto in a ground protected and a pc hid in a popcorn tin. The cash have been price roughly $3.4 billion on the time.

Associated: US government plans to sell 41K Bitcoin connected to Silk Road

The Silk Street market, defunct for roughly 10 years, allowed customers to purchase and promote illicit items corresponding to weapons and stolen bank card data, drawing the eye of U.S. authorities. The creator of the platform, Ross Ulbricht, was arrested for his position in 2013 and is currently serving two life sentences with out the potential of parole.

Journal: US enforcement agencies are turning up the heat on crypto-related crime