Silk Road Hacker Sentenced to a Year in Prison for Wire Fraud

Silk Highway Hacker Sentenced to a Yr in Jail for Wire Fraud

April 16, 2023 Off By lordanime37
Silk Road Hacker Sentenced to a Year in Prison for Wire Fraud

On April 14, 2023, the Division of Justice (DOJ) for the Southern District of New York revealed that the hacker accountable for the Silk Highway market breach had been sentenced to a 12 months in jail for wire fraud costs. James Zhong stole greater than 50,000 bitcoin from the darknet market (DNM) in September 2012. DOJ lawyer Damian Williams acknowledged that Zhong had utilized a bitcoin mixing service, a global cryptocurrency alternate, and “a powerful array of technological instruments to frustrate tracing efforts.”

Officers Seize Bitcoin, Valuable Metals, and Agency With Ties to Substantial Actual Property in Silk Highway Investigation

After a court docket submitting detailed the U.S. authorities’s intentions to promote 41,000 seized bitcoin (BTC) this calendar 12 months and the sale of 9,861.1707894 BTC that occurred on March 14, 2023, James Zhong was sentenced to a 12 months in jail by U.S. District Choose Paul G. Gardephe, as revealed by New York’s DOJ.

Zhong had utilized an elusive scheme to steal from the Silk Highway DNM, creating 9 Silk Highway accounts and triggering 140 transactions that tricked the DNM’s withdrawal system into releasing 50,000 BTC to addresses below his management.

Apparently, Zhong by no means used Silk Highway for its supposed goal, and the faux accounts have been created solely for the aim of executing the hack. Investigators estimate that it took roughly 200 to 2,000 BTC to acquire a internet whole of over 50,000 BTC.

As well as, years later, Zhong obtained 50,000 bitcoin cash (BCH) when Bitcoin was forked in August 2017, and he exchanged all of the BCH utilizing an abroad cryptocurrency alternate for 3,500 BTC after the fork. The funds have been found at Zhong’s residence in Gainesville, Georgia, in an underground ground protected submerged in blankets and a Cheetos popcorn tin.

Federal authorities seized roughly 51,351.89785803 bitcoin on three separate events, a stash of treasured metals, and $661,900 in money. Moreover, officers took Zhong’s 80% curiosity in RE&D Investments, a Memphis agency with substantial actual property holdings.

The 32-year-old Zhong pleaded responsible to wire fraud, and apart from New York’s DOJ, the case concerned the Inner Income Service (IRS), the Legal Investigation’s Western Cyber Crimes Unit of the Los Angeles Area Workplace, and the Athens-Clarke County Police Division.

What do you suppose the implications of this case will probably be for future cryptocurrency-related crimes? Share your ideas about this topic within the feedback part beneath.