$3.3 Billion in Stolen Bitcoin Seized by US Authorities

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The Division of Justice has introduced the seizure of $3.36 billion price of Bitcoin linked to the Silk Highway darkish internet market. The DoJ seized this Bitcoin in November final yr.

Division of Justice seizes $3.36B BTC

The announcement made by the US Legal professional’s Workplace comes after James Zhong pled responsible to wire fraud. Zhong acquired 50,676 BTC in September 2021. On the time, one BTC was price round $10.

The latest seizure marks the second-largest quantity of BTC seized by the DoJ. The biggest seizure by the DoJ concerned 94,000 BTC stolen from the Bitfinex hack in 2016. When the cash have been being reclaimed, they have been valued at round $3.6 billion.

The crime of wire fraud that Zhong has pled responsible to may land him in jail for as much as 20 years. The US Legal professional for the Southern District of New York, Damian Williams, has mentioned that the Bitcoin in query has been lacking for practically a decade. Williams added that legislation enforcement discovered the lacking BTC by “cryptocurrency tracing” and utilizing of-fashioned police work.

Zhong is being accused of deploying a buying and selling scheme again in September 2012. Via this scheme, he defrauded Bitcoin from Silk Highway whereas failing to listing or purchase any gadgets from {the marketplace}.

Silk Highway was one of many largest black markets on the web. {The marketplace} was used for buying and selling medicine and different unlawful merchandise. The founding father of this market, Ross Ulbricht, was sentenced to life in jail in 2015.

Zhong created greater than 140 back-to-back transactions on the Silk Highway market. He manipulated the withdrawal processing system used on the market and duped the system into releasing 50,000 BTC into a number of accounts belonging to him. In keeping with the DoJ, Zhong performed these transactions anonymously.

Zhong held on to the stolen cash, and after 5 years, he acquired an equal quantity of Bitcoin Money after the onerous fork was launched. Zhong traded the BCH that he acquired for a further 3,500 BTC.

The DOJ added that after Zhong efficiently stole the cash, he tried to hide the transactions utilizing a number of complicated transactions. Whereas the crypto house is pseudonymous, all transactions on the Bitcoin community are public. Due to this fact, legislation enforcement companies can hint the supply of the funds despatched to a pockets tackle.

Theft within the crypto house

The collapse of the Silk Highway market has not prevented hacks from persevering with within the net 3.0 & crypto sectors. These crypto hacks have been prevalent this yr. Final month, hackers stole funds after exploiting a bug within the BNB cross-chain bridge.

The biggest hacks within the crypto sector occurred earlier this yr after the Ronin Community was exploited for over $600 million. The Ronin Community hack was linked to the infamous North Korean hacking Group Lazarus.

A report by Chainalysis mentioned that $1.9 million price of cryptocurrencies had been stolen by hacks by July 2022. As these hacks proceed, 2022 may see the most important variety of hacks in crypto historical past.

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