Georgia Man Imprisoned for Defrauding Silk Road
James Zhong
According to a press release by the United States Attorney's Office for the Southern District of New York, 32-year-old James Zhong of Georgia stole approximately 50,000 bitcoin from Silk Road in 2012, by making multiple fraudulent withdrawals from the market.
Zhong reportedly executed the fraud scheme by creating nine accounts on the market in September 2012. He would then make Bitcoin deposits into the accounts followed by successive withdrawals whose total exceeded his initial deposits.
In one such case on September 19, 2012, ZHONG allegedly deposited 500 Bitcoin into a Silk Road account he had created. He then made five withdrawals of 500 Bitcoin each from the account within one second. In total, Zhong made approximately 140 similar transactions and was able to withdraw a total of approximately 50,000 bitcoin.
In 2017 he received a total of 50,000 Bitcoin Cash into the wallets as a result of the Bitcoin hard fork. He later swapped the Bitcoin Cash into approximately 3,500 Bitcoin.
Close to a decade later, investigators executed a search warrant at Zhong's residence on November 9, 2021. The investigators found and seized approximately 50,500 Bitcoin worth over $3 billion at the time. They also recovered and seized $661,900 in cash, 25 Casascius coins, silver bars, gold bars, and one gold coin.
The seizied items
He later surrendered a total of approximately 1,004 bitcoin in March, April, May, and June 2022.
The popcorn container and single board computer
Zhong pleaded guilty to one count of wire fraud on November 4, 2022.
In total, Zhong was ordered to forfeit approximately 51,680.32 bitcoin worth over $1.5 billion. He was also ordered to forfeit the cash and other assets seized from his residence.
United States District Judge Paul G. Gardephe sentenced him to one year and one day in federal prison on April 14, 2023.
Comments (29)
Anon04162023-04-16d058435e
These greedy jews make up anything to take money out of your pocket. One minute BTC isn't a legitimate currency the next they're charging you for wire fraud. How is it wire fraud if it isn't "money"
FuckNiggers2023-04-17486cd891
Because kikes, bureaucrats, and federalist bootlickers want to control everything everyone does. I say there should be a mass hacking campaign against alphabet boys.
fuckthefeds2023-04-210dacc676
This man said it 100%, but nah mane it ain't Jews just white folks in general calling the shots
annenwards2023-04-30955221d0
this is a convo i want to be a part of - Jews are the problem whites typically view usery as a crime - Jews owned significantly more slaves than american whites and were said to be more cruel - but the Jews that run hollywood and the government want blacks & whites to fight eachother so they can plunder our wealth. Jews do this in every country theyve been kicked out of - they try to get rid of all ethnic or national or religious identities for everyone accept themselves
HowDidTheyGetHIM?2023-04-168ce31490
I would love to know how they caught him... and, why he just sat there in the US with $1.5 billion in assets. Possibly loose lips? Who the fuck knows. Some advice, if you sit on $1.5 billion of what could be seen as ill gotten gains, get out of the country, convert all your shit to Monero then figure out how the fuck to keep quiet and live a nice life with a nice wife.
James Zhong2023-04-17d631e21a
This will give you a bit of insight into why he was caught =)) (CLEARNET) https://darknetlive.com/post/georgia-man-imprisoned-for-defrauding-silk-road-21f18923 Also they used the wrong man in the photo the guys chinese
Fake news2023-04-172b2e1383
This is impossible. Imagine you make a withdraw and market sends you 10000x times you wanted. dude did double click.. That is it. so you get the coins. HOW is it a crime? This must be fake. because no crime was comited.
quack2023-04-174782fa09
Its kinda how if you could technically withdraw 10000x out of an ATM than you have in your account and you go ahead and do it, its a crime. Its kinda dumb in this case since he was withdrawing other peoples drug money but who cares its 1.5b.
sheeit2023-04-18d5d9b098
its called exploiting a race condition stupid faggot. do some research or maybe you cant because youre stuck with low iq nigger brain
quack2023-04-17caadb5e8
Without more info i think he probably withdrew to a kyc exchange at some point or whatever mixer he might as used got backtraced now the gov has better tools. Seems to be how they are catching most people nowadays. Prison sentence isnt horrible but losing 1.5b will be the real life sentence here.
lol42023-04-2043c2755a
you really think he didnt plan for this ? lol im sure he has more than one wallet
FixThePhoto2023-04-183f5bbf35
This not a picture of Zhong. Zhong is a chinese immigrant. He's a fat chinese dude. Not this scandinavian looking guy.Fix the photo.
Seize this 🖕2023-04-29199c7be3
Also didn’t help he called the cops when someone stole 400,000$ and a thumb drive which raised a red flag with the IRS? Seriously what a retard he deserved it after that you steal billions and you call the ops and put yourself in the IRS crosshairs, it’s like calling the cops when you get robbed for your drugs ..
2U5iva2023-04-16efb75a6e
What a pimp