{"id":507581,"date":"2022-11-07T19:30:00","date_gmt":"2022-11-07T16:30:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/us-authorities-announce-conviction-connected-to-bitcoin-stolen-from-silk-road\/"},"modified":"2022-11-07T19:30:00","modified_gmt":"2022-11-07T16:30:00","slug":"us-authorities-announce-conviction-connected-to-bitcoin-stolen-from-silk-road","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/us-authorities-announce-conviction-connected-to-bitcoin-stolen-from-silk-road\/","title":{"rendered":"# US authorities announce conviction connected to Bitcoin stolen from Silk Road"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3bf3905fca4\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3bf3905fca4\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/us-authorities-announce-conviction-connected-to-bitcoin-stolen-from-silk-road\/#%E2%80%9D_US_authorities_announce_conviction_connected_to_Bitcoin_stolen_from_Silk_Road_%E2%80%9C\" >&#8221; US authorities announce conviction connected to Bitcoin stolen from Silk Road   &#8220;<\/a><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_US_authorities_announce_conviction_connected_to_Bitcoin_stolen_from_Silk_Road_%E2%80%9C\"><\/span>&#8221; US authorities announce conviction connected to Bitcoin stolen from Silk Road   &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<p><img decoding=\"async\" src=\"https:\/\/images.cointelegraph.com\/images\/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMTEvYzFiYWM4NjEtMTQ3YS00Zjg2LWEzZjQtNGVhNTMxNGUwNTM4LmpwZw==.jpg\" \/><\/p>\n<div class=\"post-content\" data-v-4b69a2fe>The United States Attorney\u2019s Office for the Southern District of New York has announced that an individual has pled guilty to wire fraud charges connected to \u201cunlawfully obtained\u201d Bitcoin from the Silk Road marketplace in 2012.<\/p>\n<p>In a Nov. 7 announcement, the U.S. Justice Department <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.justice.gov\/usao-sdny\/pr\/us-attorney-announces-historic-336-billion-cryptocurrency-seizure-and-conviction\">said<\/a> James Zhong pled guilty to wire fraud charges related to executing a scheme to steal roughly 50,676 Bitcoin (BTC) from Silk Road. Authorities seized the Bitcoin from Zhong\u2019s home in the state of Georgia in November 2021, at which time the total value of the crypto was roughly $3.36 billion. <\/p>\n<p>\u201cJames Zhong committed wire fraud over a decade ago when he stole <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>roximately 50,000 Bitcoin from Silk Road,\u201d said U.S. Attorney Damian Williams. \u201cFor almost ten years, the whereabouts of this massive chunk of missing Bitcoin had ballooned into an over $3.3 billion mystery.\u201d <\/p>\n<p>Williams cited \u201cstate-of-the-art cryptocurrency tracing\u201d and \u201cgood old-fashioned police work\u201d in the authorities tracking down and recovering the stolen BTC. IRS special agents raided Zhong\u2019s property, finding more than 50,491 BTC in a floor safe and \u201con a single-board computer that was submerged under blankets in a popcorn tin\u201d in addition to another hoard of more than 11 BTC, $661,900 in cash, and 25 Casascius coins worth roughly 174 BTC. <\/p>\n<blockquote><p>\u201cThis case shows that we won\u2019t stop following the money, no matter how expertly hidden, even to a circuit board in the bottom of a popcorn tin.\u201d<\/p><\/blockquote>\n<p>According to the Justice Department, Zhong\u2019s scheme involved creating nine accounts on the marketplace to conceal his identity and triggering more than 140 transactions in short order \u201cto trick Silk Road\u2019s withdrawal-processing system\u201d to send the BTC. He was able to set up the accounts with \u201cthe bare minimum of information\u201d and didn\u2019t conduct any listings or sales. After withdrawing more BTC than he had deposited, Zhong moved the funds out of Silk Road and \u201cconsolidated them into two high-value amounts.\u201d<\/p>\n<p>\u201cAs an example, on September 19, 2012, Zhong deposited 500 Bitcoin into a Silk Road wallet,\u201d said the Justice Department. \u201cLess than five seconds after making the initial deposit, Zhong executed five withdrawals of 500 Bitcoin in rapid succession \u2014 i.e., within the same second \u2014 resulting in a net gain of 2,000 Bitcoin.\u201d<\/p>\n<p><strong><em>Related: <\/em><\/strong><strong><em>DoJ seizes $3.6B in crypto and arrests two in connection with 2016 Bitfinex hack<\/em><\/strong><\/p>\n<p>Silk Road, defunct for almost ten years, originally allowed users to buy and sell illicit goods such as weapons and stolen credit card information. However, the marketplace drew the attention of the FBI as many listings were for illegal drugs.\u00a0<\/p>\n<p>Silk Road creator Ross Ulbricht was arrested for his role in 2013 and is currently serving two life sentences without the possibility of parole. Zhong could face up to 20 years in prison for wire fraud. He is expected to be sentenced in February 2023.<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"law_decoded\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/us-authorities-announce-conviction-connected-to-bitcoin-stolen-from-silk-road\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; US authorities announce conviction connected to Bitcoin stolen from Silk Road &#8220; The United States Attorney\u2019s Office for the Southern District of New York has announced that an individual has pled guilty to wire fraud charges connected to \u201cunlawfully obtained\u201d Bitcoin from the Silk Road marketplace in 2012. In a Nov. 7 announcement, the&#8230;<\/p>\n","protected":false},"author":1,"featured_media":507582,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMTEvYzFiYWM4NjEtMTQ3YS00Zjg2LWEzZjQtNGVhNTMxNGUwNTM4LmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74932,78420,71391,70934,67874],"class_list":["post-507581","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-crimes","tag-silk-road","tag-department-of-justice","tag-regulation","tag-united-states"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/507581","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=507581"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/507581\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/507582"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=507581"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=507581"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=507581"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}