The trial against the person who caused the second largest cryptocurrency scam in history ends
Cryptocurrencies have revolutionized the financial markets. They have become assets capable of putting the Public Administrations of the richest countries in the world in check. Despite the ‘winter’ in which the entire sector of these virtual currencies finds itself, it is still a popular option on the illicit market. Now there are regulated platforms, but a few years ago, these types of products they were only common in what is known as deep web.
The exchange of services through the use of cryptocurrencies, mainly Bitcoin, soon became widespread. The difference is that, at that time, the unit did not have an exorbitant price. It is important to remember, for these purposes, that in November 2021 a price close to 70,000 dollars per unit was reached. Also, so you just need a hard drive or a pen drive to store this type of digital heritage.
Well, the United States has just seized a fortune worth 3 billion dollars in Bitcoin units. In total, a total of 50,676 units of Bitcoin were stolen in the first years of the bubble, according to information provided by CNBC. Let’s see how the loot has been recovered and, of course, what has happened to the person who carried out this scam.
They manage to find the second most outstanding blow in the universe of cryptocurrencies
The United States Department of Justice, after a long and patient investigation, has been able to recover the thousands of units of Bitcoin that were stolen from the illegal Silk Road market. This platform, installed in the deep web, worked for only a few years and was focused, above all, on carrying out all kinds of illegal activities. After its closure by the country’s authorities, the trail of what would be the second largest theft in history in terms of the crypto universe and web3 environment was lost.
For almost a decade, the whereabouts of James Zhong, the scammer who carried out the most high-profile multi-million dollar cryptocurrency theft operation, have been sought. after the one that occurred in 2016 with the hacking of Bitfinex. Mr. Zhong was arrested on November 9, 2021, and after that, a raid was carried out at his home to obtain evidence. Having carried out the registration in Gainesville, Georgia, it was soon possible to verify the format in which he had managed to keep his Bitcoin units during all these years.
For nearly 10 years, the whereabouts of this huge missing chunk of Bitcoin had remained a $3.3 billion-plus mystery. Damian Williams, federal prosecutor in the United States
The process carried out by Zhong allowed him to pocket a huge number of Bitcoin units. He created nine fraudulent accounts on the Silk Road platform. In each of them he arranged between 200 and 2000 units of Bitcoin. It should be noted that at that time the price of this cryptocurrency was much lower than what it has had since. By activating up to 140 transactions quickly, he cheated the withdrawal processing system, so was made with more than 50,000 coins of this class. Later, Zhong transmitted them to cold wallets so that the trace could be lost.
Curiously, after the investigation of the address it was possible to verify how there was part of the cryptography used in the commission of the crime hidden in blankets located inside a popcorn jar. As you can imagine, it has been possible to verify how Zhong led a wild rhythm of life since she took control of her precious booty.
Zhong has pleaded guilty in the recent trial. The crime committed, constituted by electronic fraud, carries a maximum sentence of 20 years in prison in the United States.