US Attorney Seizes 50k Bitcoin in Connection with Silk Road Fraud

US Attorney Seizes 50k Bitcoin in Connection with Silk Road Fraud

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The Department of Justice has announced a massive seizure of Bitcoin from the 2012 Silk Road dark web fraud.

With governments interest in crypto rising continuously, the space is likely to attract investors more than ever before, this is an indication of a brighter future for crypto.

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US Seizes 50,676 Bitcoin Related to the Darknet Marketplace Silk Road

Damian Williams, the U.S. Attorney for the Southern District of New York on Monday announced the seizure of 50,676 Bitcoins associated with darknet marketplace Silk Road in November.

At the time of the discovery, the Bitcoin was found to be worth $3.36 million but is now worth more than $1 billion, so far, it is the largest crypto seizure in history, surpassing the 70k Bitfinex hack-related Bitcoin seized in February this year.

According to the release by the Justice Department, the crypto was discovered at an address in Georgia connected with James Zhong. Additionally, the Feds also found several precious metals as well as cash of more than $650,000.

As per the release by the US Justice Department on Monday, James Zhong pleaded guilty to committing the wire fraud in 2012.

“This case shows that we won’t stop following the money, no matter how expertly hidden, even to a circuit board in the bottom of a popcorn tin,” said Williams in a statement.

The Silk Road was an illegal marketplace on the darknet that operated between 2011 and 2013 and that primarily used Bitcoin as a payment method. The site crashed following the arrest of its operator, Ross Ulbricht, who is serving a double life sentence and 40 years in prison, without the possibility of parole.

Back in 2014, the US Marshals auctioned off several tranches of seized bitcoin, with 50,000 coins auctioned for $20 million and 30,000 coins auctioned months later.

According to the Department of Justice, Zhong manipulated Silk Road’s withdrawal system by triggering 140 transactions in rapid succession, fooling the system into crediting several external wallets with the crypto.

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