According to information released by the DOJ on Monday, the Department of Justice confiscated more than $3.36 billion in bitcoin last year as a result of fraud committed on the so-called “dark web.”
According to the DOJ, James Zhong stole 50,000 bitcoins from the Silk Road Marketplace, a notorious dark web platform used by drug dealers and other illegal actors from 2011 to 2013. Zhong entered a guilty plea for wire fraud on Friday, and the government’s seizure of his stolen bitcoin on November 9, 2021, is the second-largest financial seizure in the agency’s history in terms of cash value.
According to the DOJ, Tyler Hatcher, the Special Agent in Charge of the Internal Revenue Service, Criminal Investigation, Los Angeles Field Office, said that “Mr. Zhong executed a sophisticated scheme designed to steal bitcoin from the notorious Silk Road Marketplace.”. “Once he was successful in his heist, he attempted to hide his spoils through a series of complex transactions, which he hoped would be enhanced as he hid behind the mystery of the ‘darknet.’”
According to the U.S. Attorney’s Office of the Northern District of California, in November 2020, the DOJ took 69,000 bitcoin from a hacker it only named as “Individual X,” which was worth at over $1 billion at the time. The Silk Road founder Ross Ulbricht, who was found guilty of drug trafficking and money laundering in 2015 and given a life sentence, had the cryptocurrency taken from him, according to a story from The Wall Street Journal at the time.
Fed announce $3.36 billion seizure of bitcoin which was stolen from the Silk Road, and represents the second-largest recovery of crypto.
— unusual_whales (@unusual_whales) November 7, 2022
Beyond the news release, the DOJ declined to comment.
More on this story via The Western Journal