UpdatesApr 17, 2023

The hacker behind the theft of BTC from Silk Road has been sentenced by the US judiciary to a year in prison

The person behind the hacking of the now-defunct darknet marketplace has fully pleaded guilty to allegations of Bitcoin theft.

The Department of Justice (DOJ) for the Southern District of New York has just announced that a hacker responsible for the theft of approximately 50,000 Bitcoins from Silk Road has been sentenced to one year in prison. This outrageous incident occurred in September 2012. The man behind the attack used a number of tools in the course of his activities to cover his tracks when transferring the stolen funds. He managed to hide his crime for a very long time, because it lasted 10 years before he was charged.

The hacker behind the theft of BTC from Silk Road has been convicted

The U.S. Department of Justice recently issued a statement informing the public that it had convicted a person who fully pleaded guilty to fraud charges related to the unlawful takeover of BTC from Silk Road in 2012.

Previously accused James Zhong was sentenced by the US judiciary to one year and one day in prison. The man pleaded guilty to all charges against him in November 2022. He managed to hide his crime from investigators for about 10 years.

Law enforcement authorities, in the course of searching the apartment of the accused man, found private keys to the cryptographic addresses where the Bitcoins stolen from Silk Road were stored. This man hid them, among other things, in a popcorn can. According to the investigators' findings during the investigation, James Zhong never used Silk Road for the purpose of this illicit platform. In turn, a fake account created on it was only used to hack.

Federal authorities seized over 50,000 BTC coins, precious metals and cash accumulated by the accused. Moreover, after the hard fork of the leading cryptocurrency in 2017 when Bitcoin Cash (BCH) was created, Zhong received an additional 50,000 BCH coins, which he exchanged for 3,500 BTC using an account on a foreign exchange. US law enforcement officers also seized James Zhong's 80% stake in RE&D Investments.

US prosecutor Damian Williams announced after Zhong's capture that cybercriminals cannot feel impunity on US territory. In an official statement, he emphasized that law enforcement will follow them to hold them accountable for their actions no matter how sophisticated the scam scheme they use and how long it lasts.

It is worth noting that Silk Road, which has been defunct for about a decade, once allowed its users to trade illegal goods and services using Bitcoin on the darknet. Weapons, drugs and other prohibited substances could be purchased on this platform. Its founder, Ross Ulbricht, was arrested in 2013. He is currently serving a life sentence without parole.