The U.S. police uncovered an old theft case on the Dark Web Silk Road: In 2012, 50,000 Bitcoins were stolen from the Dark Web Silk Road. The value of these stolen Bitcoins eventually reached more than $3 billion, making it the largest cryptocurrency in the world. One of the great mysteries. Ten years later, the hacker was accidentally found during a theft report.

$3 Billion Stolen and Lost: The Secret Life of Jimmy Zhong

On March 13, 2019, 28-year-old University of Georgia alumnus and local partygoer Jimmy Zhong reported the theft of a large amount of cryptocurrency from his home. Jimmy Zhong is also a computer expert and has an extremely powerful digital surveillance system at home. The system also captured a photo of the thief:

Jimmy Zhong is known for his lavish lifestyle, which includes throwing parties, staying at luxury hotels and shopping for luxury items. He claims to be an early participant in Bitcoin in 2009.

Jimmy Zhong (China)

The theft, nearly 10 years after the 2012 Silk Road hack, allowed the IRS-Criminal Investigations Division (IRS-CI) to solve the case. Blockchain analytics firm Chainalysis noticed a mistake by the hackers. Darknet hackers transferred a small amount of cryptocurrency to an exchange that required the account holder to provide their real name and address. The account was registered in the name of Jimmy Zhong.

The IRS, working with local police, further investigated Jimmy Zhong, approaching him under the guise of assisting with a burglary at his home, but actually investigating him for involvement in the Silk Road burglary.

Jimmy Zhong shows police millions of dollars in Bitcoin on computer

Police asked Jimmy Zhong to open his laptop and explain his Bitcoin holdings. After opening the laptop, they saw that his Bitcoin wallet contained between $60 million and $70 million worth of Bitcoin.

Evidence collected during this visit allowed investigators to obtain a search warrant for Jimmy Zhong. They returned on November 9, 2021, with a large team of police officers conducting a thorough search.

During the search, they discovered a computer inside a popcorn jar with millions of dollars worth of Bitcoin hidden inside. They also discovered a safe buried under the basement floor that contained precious metals, cash and physical bitcoins, including some from the 2012 Silk Road hack.

Bitcoins seized from underfloor safe

Investigators discovered that Jimmy Zhong is an OG in the crypto world. He has been involved with Bitcoin since its inception in 2009, contributing to the original Bitcoin code and providing ideas to early developers.

Jimmy Zhong was charged with wire fraud and was sentenced to one year and one day in federal prison after pleading guilty. He begins his sentence on July 14, 2023.

US government seizes darknet Bitcoin

The U.S. government confiscated the stolen Bitcoins. Although victims were offered the opportunity to recover their Bitcoins, no one came forward. The government sold the stolen Bitcoins and kept the proceeds. A portion of the proceeds may be shared with local police for their help in the case.

(The U.S. government is a major Bitcoin owner with 200,000, but “value” is not its main concern)

At his sentencing, Jimmy Zhong said owning billions of dollars in stolen bitcoins made him feel important. His lawyers argued that the theft did not harm the U.S. government, but instead benefited from it.

(For more details of the case, please see CNBC report)

This article 3 billion magnesium was stolen from a rich and wealthy man in Bitcoin, and the US police accidentally discovered that he was a darknet thief. First appeared on Chain News ABMedia.