Bitcoin Heist

سرقة البيتكوين

Bitcoin Heist, it’s been a long time coming, but finally,
justice has been served for the victims of the Silk Road Bitcoin theft.


How He Stole Millions in Cryptocurrency
Fall of the theft
How Far would the Law go






How He Stole Millions in Cryptocurrency


The Georgia property developer who stole approximately 50,000 Bitcoin from the cybercrime dark web site pled guilty to wire fraud on Friday.
Zhong, a former bitcoin trader and investor, has agreed to plead guilty to federal charges related to his involvement in a scheme to launder money through the purchase of luxury cars.
In 2013, a Chinese national named Zhong Yihao stole millions of dollars worth of Bitcoin from the Silk Road marketplace.
Here’s how he did it.
Zhong discovered that he could trigger Silk Road’s payment processing system into paying out excess amounts by creating an account and then making withdrawals within the same second.
That way, a deposit of 500 Bitcoin could result in a 2500 Bitcoin haul,
over the course of a few days, Zhong created about nine user accounts and made 140 transactions. U.S



Fall of the theft


James Zhong, of Gainesville, Georgia, pleaded guilty on Nov. 4 to one count of wire fraud and faces a maximum sentence of 20 years in prison.
The FBI arrested Zhong in 2013 after he logged onto the Silk Road illegal market emporium from his laptop as the system administrator using his assumed name of Dread Pirate Roberts.
Since founding the website in 2011, Zhong paid approximately $650,000 in murder-for-hire schemes;
however, none of the five intended victims actually died as a result.

This is a huge victory not just for those who were directly affected by this crime,
but also for all traders and investors who have been keeping an eye on this case.
For too long, Silk Road has been a haven for criminal activity, and it’s gratifying to see that its operators are finally being held accountable.
We can only hope that this will deter other would-be criminals from using cryptocurrencies to facilitate their illegal activities in future.






How Far would the Law go


The recent court filings against James Zhong “Jimmy”. As many of you know, Mr Zhong is accused of stealing approximately $577,000 worth of cryptocurrency from Silk Road users by exploiting a flaw in the wallet software. While this may seem like a large sum of money, it’s important to remember that Bitcoin values fluctuate rapidly and this amount could have been much higher or lower at the time of the theft.

Interestingly, Mr Zhong went to great lengths to hide his ill-gotten gains, storing them on devices in an underground floor safe and even inside a popcorn tin in a bathroom closet! This just goes to show that no matter how creative a person can be with hiding places, eventually, the law will catch up.

Under the terms of his plea agreement, Zhong could face 27 to 33 months in prison under recommended federal guidelines at his Feb. 22, 2023 sentencing before U.S. District Judge Paul Gardephe, though prosecutors can seek a longer sentence.
The defendant also agreed to forfeit his stake in a real estate company, plus $661,900

His lawyer Michael Bachner said Zhong has returned “virtually” all of the bitcoin.
“Mr Zhong is extremely remorseful for his conduct that occurred over 10 years ago when he was just 22,” Bachner said in a statement.