Justice Department seizes $3.36 billion in cryptocurrency in historic ruling

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That Ministry of Justice seized $3.36 billion in cryptocurrency today in what is a historic ruling. The US Department of the Executive announced that James Zhong has pleaded guilty to fraud in connection with the Silk Road black market.

It was revealed today that New York attorney Damian Williams has led the seizure of over 50,000 Bitcoin in connection with the Silk Road dark web scam. This was additionally executed along with Tyler Hatcher, a special agent in charge of the IRS Criminal Investigation LA office.

Silk Road fraud case leads to historic seizure

A search warrant issued against James Zhong’s home in Georgia led to 51,676 police. 17851897 Bitcoin. The massive seizure was valued at over $3.36 billion and is the largest cryptocurrency seizure in US history. In addition, it was the second largest financial seizure ever.

Damian Williams stated, “James Zhong committed wire fraud over a decade ago when he stole approximately 50,000 Bitcoin from Silk Road. For nearly ten years, the whereabouts of this huge chunk of missing Bitcoin ballooned into a mystery of over 3.3 billion dollars.”

“Thanks to state-of-the-art cryptocurrency tracking and good old-fashioned policing,” Williams continued, “law enforcement has found and recovered this impressive cache of crime proceeds.”

IRS Agent Hatcher added, “Mr. Zhong executed a sophisticated scheme designed to steal Bitcoin from the infamous Silk Road Marketplace. Once he was successful in his heist, he attempted to conceal his loot through a series of complex transactions that he hoped would be enhanced when he hid behind the mystery of the ‘dark tent’.”

Silk Road is a notorious corner of the dark web that was in operation for about two years. In addition, according to the Ministry of Justice, from 2011 to 2013, the platform was used for illegal drugs, illegal services and for money laundering.

Source: Numerama

The DOJ added that Zhong would use Silk Road to deposit somewhere between 200 and 2,000 Bitcoin. Subsequently, through a series of withdrawals, Zhong would hope to cheat even more Bitcoin than he deposited.

Zhong has pleaded guilty to wire fraud, which carries a maximum sentence of 20 years in prison.



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