- James Zhong 2012 stole greater than 3.4 billion {dollars} from the Silk Street.
- Zhong exploited a vulnerability within the system to carry out greater than 140 transactions in fast succession.
- Zhong hid the stolen Bitcoin in varied places till authorities found him in 2021. in November.
April 14 The US Lawyer’s Workplace for the Southern District of New York has introduced {that a} Georgia man has been sentenced to 1 yr in jail for stealing $3.4 billion price of Bitcoin.
James Zhong’s unique crime was wire fraud in opposition to Silk Street in 2012, in keeping with authorities. Because of this, Zhong was capable of steal greater than 51,680 BTC from the darknet market, which was price $3.4 billion on the time. USD and is presently valued at 1.57 billion.
As well as, to hold out the theft, Zhong opened a number of accounts on Silk Street and deposited a small quantity of Bitcoin into every. He then made greater than 140 transactions in fast succession, successfully exploiting a vulnerability within the system and prompting Bitcoin to be launched into his accounts.
After stealing the Bitcoins from Silk Street, Zhong took steps to cover his possession of the funds by transferring them to a number of addresses and utilizing Bitcoin mixers to make it tougher to hint. It needs to be famous that he didn’t use the Silk Street Market to purchase or promote something on the time of the theft.
Later in 2017, Zhong benefited from a tough fork that offered him with further funds. He transformed all his Bitcoin Money holdings to Bitcoin.
Though he dedicated the theft greater than a decade in the past, Zhong was capable of conceal his actions till November 2021, when legislation enforcement officers raided his residence. Throughout the search, brokers discovered the stolen Bitcoin hidden in a flooring protected, in addition to one laptop that was hidden below blankets and in a Cheetos popcorn tin.
Along with the recovered Bitcoins, authorities additionally seized different valuables reminiscent of money, treasured metals and bodily Bitcoins from the Casascius model.
in 2022 In March, Zhong initiated the switch of beforehand undiscovered Bitcoins to authorities.
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