Crypto Hacker Sentenced to Prison for Fraudulent Activities – Bitcoin News

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On April 14. 2023 Department Of Justice The Department of Justice (DOJ) has announced that a crypto hacker who was responsible for the Silk Road Marketplace breach was sentenced to a year in jail on charges relating to wire fraud. James Zhong It is alleged that he managed to take more than 50,000 bitcoins from the Darknet Market (DNM) back in September 2012. DOJ Attorney Damian Williams stated that Zhong had used a bitcoin mixing service in combination with an international cryptocurrency exchange.

Officials Seize Bitcoin, Precious Metals, and Real Estate Connected to Investigation

A court filing revealed that the U.S. government had intended to sell 41,000 seized bitcoin (BTC) during this calendar year and the sale of 9,861.1707894 BTC that occurred on March 14, 2023. James Zhong was sentenced to one year in prison by the U.S. District Judge Paul G. Gardephe, as reported by New York’s DOJ.

It is believed that Zhong had employed a sophisticated scheme to steal from the Silk Road DNM, generating nine Silk Road accounts and triggering 140 transactions that tricked the DNM’s withdrawal system into releasing the 50,000 BTC to addresses that were under his control.

Interestingly, Zhong never used the Silk Road for its proposed purpose and the fake accounts were solely created to execute the hack. Law enforcement agents claimed that it cost between 200-2,000 BTCs for a net amount of more than 50 BTCs.

Crypto Hacker Sentenced to Prison for Fraudulent Activities
Pictures From the James Zhong According to the investigation Southern District You can also find out more about the following: New York Department You can also find out more about the following: Justice.

In addition, years later Zhong was able to acquire 50,000 Bitcoin Cash (BCH) after the fork in August. After the BCH fork, he sold all his BCH to an overseas cryptocurrency exchange in exchange for 3,500 BTC. The funds located were: in Zhong’s residence in Gainesville, Georgia, a subterranean floor safe with blankets and other items, a Cheetos popcorn tin.

Federal authorities have seized approximately 51,351.89785803 of bitcoins on three different occasions, along with a stash containing precious metals as well as $661,900 cash. Law enforcers also took Zhong’s 80% interest in RE&D Investments, a Memphis company with substantial real estate holdings.

The 32-year-old defendant pleaded guilty for wire fraud and, aside from New York’s DOJ, the case involved the Internal Revenue Service Criminal Investigation’s Western Cyber Crimes Unit, the Los Angeles Field Office, and the Athens-Clarke County Police Department.

Tags In this Story
50000 Bitcoin, 50000 BTC, Athens-Clarke County Police Department, Bitcoin, Bitcoin (BTC), bitcoin cash, bitcoin cash BCH, Blockchain, CourtCriminal charges Cryptocurrency, cyber crime, darknet marketplace, Digital Assets, DOJ, Funds, Hacker, HackingExchange of international currency Investigation, IRS, Law Enforcement, Los Angeles, Memphis. Total net Precious Metals, prison, RE&D Investments, Real estate, seized, sentencing, Silk RoadThe use of sophisticated technology Theft, U.S. GovernmentUnderground floor safe Wire Fraud

What do you think the implications of this case will be for future cryptocurrency-related crimes? Share Comment below with your thoughts on this topic.

Jamie Redman

Jamie Redman It is not. News Lead On the other hand, Bitcoin.com News I am a journalist who specializes in financial technology. Florida. Redman Has been a part of the cryptocurrency community

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