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A man convicted of stealing around 50,000 Bitcoin was sentenced Friday to a year in prison. The ill-gotten funds, worth $3.4 billion, were found in the most bizarre location.
In November 2021, US authorities obtained a search warrant for James Zhong's home in Gainesville, Georgia. There investigators recovered more than 50,000 Bitcoin, found within both "an underground floor safe and on a single-board computer that was submerged under blankets in a popcorn tin stored in a bathroom closet."
The 32-year-old was alleged to have stolen the digital currency from Silk Road, a marketplace on the so-called "dark web", by opening multiple accounts and trickling the Bitcoin out while concealing his identity. The theft actually occurred back in 2012.
U.S. Attorney Damian Williams said: “Back in 2012, James Zhong committed wire fraud by stealing 50,000 Bitcoin from Silk Road, and for the next 10 years, he managed to conceal what he had done and how he obtained his fortune. Zhong used a decentralized Bitcoin mixer, an overseas cryptocurrency exchange, and an impressive array of technological tools to frustrate tracing efforts. But thanks to the relentless and skillful efforts of law enforcement in following the money, the federal government uncovered Zhong’s scheme and obtained final orders of forfeiture for over 51,680 Bitcoin. Cyber-criminals should heed this message: we will follow the money and hold you accountable, no matter how sophisticated your scheme and no matter how long it takes.”
Workshop: Accounting & Mapping Transactions On-chain | The Bitcoin Master Classes
Bitcoin Masterclass 3 is: Accounting and mapping transaction on-chain | ... https://t.co/RZoVK7gvrz via @YouTube
— gambling911 (@gambling911) April 16, 2023
The final session of the Bitcoin masterclass workshop in Zurich invited the attendees to form groups and work on ideas for utilizing the concepts that have been discussed so far—such as for tracking lab mice, accounting and secondary markets, even medical records, maintenance and loyalty programs, or for quality control of luxury goods.
An on-chain cryptocurrency transaction is one that is completed through transmission via a blockchain for validation and storage purposes.
- Nagesh Rath, Gambling911.com
