A Georgia guy who stole more than 50,000 Bitcoin from the Silk Road market in 2012 has been sentenced to a 12 months in jail.
In a Friday press launch, the USA Justice Department said James Zhong has been sentenced to 365 days and in the future in jail for fees associated with executing a scheme to thieve greater than fifty one,680 Bitcoin from the Silk Road drug-trafficking site.
The DOJ noted that Zhong has been charged with one remember of wire fraud for unlawfully acquiring about 50,000 Bitcoin from the Silk Road dark internet net market.
According to the federal organisation, in 2021, US police searched Zhong’s home in Gainesville, Georgia, and found about 50,676 bitcoin worth greater than $three.36 billion.
Notably, the seizure went unannounced until November remaining year, when the DOJ sooner or later discovered that it had discovered approximately $3.36 billion in stolen bitcoin in the course of an unannounced 2021 raid on James Zhong’s home.
With Bitcoin buying and selling at round $11 in 2012, the stash of stolen BTC become really worth approximately $six hundred,000 on the time of the heist.
However, whilst authorities seized gadgets keeping the stolen Bitcoin in November 2021, its value exploded, making it the second one-largest economic seizure in US history.
Zhong has entered a responsible plea to one remember of wire fraud, which carries a most sentence of twenty years in jail.
Before being arrested, Zhong spent $16 million of the stolen BTC on real estate investments, luxurious motels, nightclubs, and Lamborghinis, prosecutors said.
“Cyber-criminals should heed this message: we can observe the cash and hold you responsible, regardless of how state-of-the-art your scheme and irrespective of how lengthy it takes,” stated U.S. Attorney Damian Williams.
Meanwhile, prosecutors have requested the decide to offer him less than years in prison, bringing up his teens, his autism, and his help in recuperating the stolen crypto.
He became “critically bullied and victimized through his peers due to the fact he turned into one of a kind — he turned into extraordinarily shy, overweight, and most importantly, suffered from undiagnosed autism spectrum disease,” Zhong’s lawyers said in courtroom papers.
Zhong Stole 50,000 BTC Using a Simple Glitch
It is worth noting that Zhong did no longer execute an advanced hacking approach to scouse borrow the funds, instead he used a simple glitch on Silk Road’s internet site.
Zhong, who stored some Bitcoin on Silk Road, mistakenly double-clicked the withdrawal button, which resulted within the withdrawal occurring two times.
Subsequently, he deposited extra tokens and quickly withdrew them, double-clicking whenever.
In their sentencing memo, Zhong’s legal professionals argued that while he had no right to the stolen Bitcoin, however neither did Silk Road.