UpdatesNov 08, 2022

US demands $1B in Bitcoin from Silk Road

US prosecutors are demanding money from darknet criminals!

Manhattan federal prosecutors said the United States is demanding up to $ 1 billion in Bitcoin from the criminal activities of Silk Road. In November 2021, agents from the Internal Revenue Service (IRS) successfully seized 50,000 units of BTC during a search of accused James Zhong's house in Georgia. A 32-year-old criminal recently confessed to a scam involving a darknet platform designed to sell illegal services and goods.

Background of the case and the seizure of Silk Road's Bitcoin

Federal prosecutors in Manhattan announced on Monday that US authorities are currently demanding $ 1 billion in BTC seized from James Zhong in November 2021. The IRS then confiscated as many as 50,000 Bitcoins.

Agents searched the accused's home in Gainesville, Georgia. During the search, private keys to BTC were found on the suspect's computer and in the popcorn can, which was stored in the bathroom cabinet.

The search for the 'missing' BTC lasted almost 10 years. American lawyer - Damian Williams emphasized in a public statement that the American authorities will not stop following the stolen money.

James Zhong admitted Friday to his involvement in the theft of thousands of Bitcoins from the Silk Road platform, which was shut down in 2013. The defendant is threatened with imprisonment from 27 to 33 months for this act. Zhong expressed his remorse in court, and his defense attorney stressed that the accused was only 22 years old at the time of the offense. The defense attorney added that the accused returned virtually 'all' Bitcoins.

In 2015, the creator of Silk Road - Ross Ulbricht faced seven charges. The darknet platform he created allowed to trade illegal goods and services online. Payments were made via Bitcoin. The creator of Silk Road was sentenced to life imprisonment.

Fall in BTC value

Bitcoin seized in November last year is currently about 70% less in value. During this period, the oldest cryptocurrency has dropped from around $ 68.7 thousand to just $ 20 thousand today.