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Crime and Investigations

Silk Road Hacker Sentenced to 1 Year in Prison For Stealing 50,000 BTC

Silk Road Hacker Sentenced to 1 Year in Prison For Stealing 50,000 BTC

A person who gained possession of 50,000 Bitcoin (BTC) that was stolen from Silk Road, an online marketplace, is now facing a prison sentence.

The US Department of Justice (DOJ) released a statement indicating that James Zhong was sentenced to one year and one day in prison for his involvement in stealing the BTC more than ten years ago.

According to US Attorney Damian Williams, Zhong used various techniques to conceal his theft, including a Bitcoin mixer, an overseas cryptocurrency exchange, and sophisticated tools to evade detection.

Zhong created fraudulent accounts to hide his identity and tricked the withdrawal system into releasing the BTC to him.

READ MORE: Bitcoin and Ethereum at Risk of Crash in Looming Deflation – Bloomberg Analyst

In November 2021, authorities searched Zhong’s home in Georgia and seized about 50,491 BTC, cash, precious metals, and physical BTC coins.

Since March 2022, Zhong has voluntarily surrendered 1,004 BTC. The government plans to sell the recovered BTC, which is now worth over $1 billion. BTC is trading at $30,439, having experienced exponential growth since Zhong obtained it in 2012.

Alexander Stefanov

Reporter at CoinsPress

Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.

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