According to media reports, the mastermind behind the $3.4 billion bitcoin theft from the Silk Road marketplace has been sentenced to one year and one day in prison. James Zhong, who admitted to committing wire fraud connected to the unlawfully obtained bitcoin scheme, had been awaiting sentencing since November 2022.
The Southern District of New York’s United States Attorney’s Office made the announcement on April 14, stating that Zhong had executed a scheme to steal over 51,680 bitcoin in 2012. Zhong managed to conceal his crime for nearly ten years before facing charges.
US authorities were able to seize the bitcoin holdings from Zhong’s home in Georgia in November 2021, where the majority of the cryptocurrency was found by the authorities in a safe on the floor and a computer hidden inside a container used for popcorn.
The Silk Road marketplace, which was notorious for allowing users to buy and sell illegal goods such as stolen credit card information and weapons, drew the attention of US authorities. In 2013, Ross Ulbricht was apprehended for his involvement in the Silk Road marketplace and is now serving two life sentences without the chance of parole.
The sentencing of Zhong marks the end of a long and complex investigation into the Silk Road case, which has been ongoing for nearly a decade. The US government plans to sell the 41,000 Bitcoin connected to the Silk Road case.
