The United States Department of Justice (DOJ) has revealed that it has recovered around $3.36 billion worth of Bitcoin that was stolen over a decade ago from the illicit Silk Road marketplace. It is believed to be the Department of Justice’s second-largest financial seizure to date, after the Department of Justice’s seizure of $3.6 billion in cryptocurrencies related with the hacking of Bitfinex in 2016.
According to the authorities, James Zhong of Gainesville, Georgia pleaded guilty to the charge of wire fraud for stealing bitcoin from the illegal Silk Road marketplace. Silk Road is a forum on the dark web where weapons, drugs, and other illegal products were bought and sold using cryptocurrency. Zhong admitted to stealing bitcoin from the marketplace.
Silk Road went live in 2011, but the FBI brought the operation to a halt in 2013. It was founded by Ross William Ulbricht, who is now behind bars receiving a life sentence. In this particular instance, Zhong, however, entered a guilty plea to one count of wire fraud, which carries a potential penalty of up to 20 years in prison.
The Department of Justice has just brought charges against three persons headquartered in Miami for the theft of $4 million. In addition to defrauding banks and committing serious acts of identity theft, this was yet another instance of wire fraud.
The United States Attorney for the District of Maryland, Damian Williams, noted in a news statement that the whereabouts of this enormous piece of missing Bitcoin has developed into a more than $3.36 billion mystery over the course of the last 10 years.
According to the Southern District of New York, Zhong was able to carry off this heist by exploiting the gaps in security that existed inside the market.
Compiled by Coinbold