The United States Attorney’s Office for the Southern District of New York has announced the sentence of a person who pleaded guilty to wire fraud charges involving Bitcoin “illegally obtained” from the Silk Road market in 2012.
In an April 14 announcement, the US Department of Justice. saying James Zhong was sentenced to one year and one day in prison on charges related to running a scheme to steal more than 51,680 Bitcoin (BTC). Zhong pleaded guilty to the charges in November 2022 and was awaiting sentencing.
“Cybercriminals need to heed this message: We will follow the money and hold them accountable, no matter how sophisticated their scheme is and no matter how long it takes,” US Attorney Damian Williams said.
According to Williams, Zhong stole the BTC in 2012 and managed to hide his crime for roughly 10 years before facing charges. US authorities seized Bitcoin holdings from Zhong’s home in the state of Georgia in November 2021, finding most of the cryptocurrency in a floor safe and a computer hidden in a popcorn can. The coins were worth approximately $3.4 billion at the time.
In the US Attorney’s sentencing memorandum for Silk Road Bitcoin thief James Zhong: Investigators seized criminal proceeds from “a single-board computer that was submerged under the covers in a can of popcorn from corn stored in a bathroom cabinet. (Sentencing is today at 3 pm). pic.twitter.com/7aamQryQ6B
—Raquel Scharf (@rscharf_) April 14, 2023
Related: The US government plans to sell 41K Bitcoin connected to the Silk Road
The Silk Road marketplace, defunct for about 10 years, allowed users to buy and sell illicit goods such as weapons and stolen credit card information, drawing the attention of US authorities. The platform’s creator, 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 Increasing Pressure on Crypto-Related Crimes
