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Department Of Justice Seized Over 50,000 Bitcoin From Silk Road Hack

A hacker who stole 50,000 Bitcoin from Silk Road ten years ago had over $3.36 billion worth of Bitcoin seized by the Department of Justice.

Department Of Justice Seized Over 50,000 Bitcoin From Silk Road Hack 3

James Zhong admitted to committing wire fraud in a Manhattan courtroom in 2012 after stealing 50,676 BTC from the Silk Road. The Silk Road was the first significant darknet marketplace where sellers could accept bitcoin in return for sometimes illegal goods.

Through various fictitious accounts, Zhong was able to con the Silk Road payment processor into sending him the Bitcoin.

According to officials, the operation was the second-largest seizure of any sort in DOJ history and was the largest cryptocurrency seizure ever.

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The Bitcoin was first taken from Zhong’s residence by authorities on November 9 last year during a raid, along with bars of precious metals and over $600,000 in cash.

A single-board computer that was covered in blankets in a popcorn tin kept in a bathroom closet, as well as a large portion of the Bitcoin, were discovered there. The private keys were recovered in an underground safe.

Zhong’s Bitcoin is currently valued at just over $1 billion due to the market fall during the previous year.

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Harold

CoinCu News

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.