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.
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.